Indonesia will maintain its ban on raw mineral exports despite recent trade talks with the United States aimed at easing restrictions on critical mineral shipments, officials from the Ministry of Energy and Mineral Resources said.
The statement follows a joint announcement from Washington and Jakarta on July 22 outlining a framework for a potential reciprocal trade agreement. As part of the agreement, Indonesia committed to removing restrictions on exports to the United States of industrial commodities, including critical minerals.
U.S. President Donald Trump said in the joint statement that Indonesia would remove export restrictions on industrial goods, including critical minerals.
However, Indonesian officials clarified that any export of minerals to the U.S. would involve only processed materials and remain in line with the country’s long-standing downstreaming policy.
“All exports must comply with our domestic rules. This agreement covers industrial commodities—processed minerals—not raw ore,” Dadan Kusdiana, Secretary General of Indonesia’s Ministry of Energy and Mineral Resources (ESDM), told Bisnis.com on Wednesday.
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Indonesia classifies minerals such as nickel, copper, aluminium, tin, magnesium, manganese, and cobalt as “critical minerals” under a 2023 ministerial decree.
The Southeast Asian nation has banned the export of raw nickel ore, bauxite, and copper concentrate in recent years to boost domestic processing and attract investment in the battery and electric vehicle supply chain.
Energy Minister Bahlil Lahadalia also said the government would continue to prioritize mineral downstreaming under President Prabowo Subianto’s administration.
“Even in our negotiations with the U.S., domestic regulations will remain in place,” Bahlil said, adding that any potential copper exports would still need to comply with the ban on unprocessed shipments.
He said further discussions with President Prabowo and Coordinating Minister for Economic Affairs Airlangga Hartarto would determine how the agreement would be implemented.
“As far as I know, everything remains within the framework of our national regulations,” Bahlil said.
Editing by Reiner Simanjuntak
