Indonesia’s intermediate mineral industry stalls amid policy gaps
As a result, materials such as aluminum alloy, silicon wafer and permanent magnets are still largely imported.
The development of Indonesia’s intermediate mineral and advanced materials industry is seen as stalling because there is still no certainty on regulation or adequate fiscal and nonfiscal incentives. Bisman Bhaktiar, executive director of the Pusat Studi Hukum Energi & Pertambangan, said the obstacle has left national downstream processing stuck at semi-finished products, so the largest value added in the next stage has not been achieved. At Danantara's Advanced Materials Industry Dialogue 2026 in Jakarta, he pointed to gaps in materials that connect processed minerals with strategic manufacturing. Examples include aluminum alloy, special steel, battery-grade aluminum foil and copper foil, silicon wafer, and NdFeB permanent magnets. The forum also involved MIND ID, LEN Industri, Krakatau Steel, and Perminas.