Indonesia is set to collaborate with India on the development of critical minerals, resources that are increasingly sought after globally. The potential partnership was discussed following a meeting between Indonesian Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung and Sandeep Poundrik, Secretary of India’s Ministry of Steel.
According to Tanjung, the collaboration aims to strengthen Indonesia’s national energy security although also creating opportunities for sustainable investment and long-term economic benefits.
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Discussions centered on drafting a memorandum of understanding (MoU) to serve as a framework for cooperation between the two countries. The agreement, if finalized, would be signed at the ministerial level.
“We discussed many aspects. This is one of the things they inquired about – how to enhance cooperation through an agreement or MoU,” Tanjung said during a meeting at the Ministry of ESDM in Jakarta on Friday, February 27, 2026.
The proposed MoU would see the Indian government encourage companies from India to invest in Indonesia, particularly within the metals industry, Tanjung explained.
“The cooperation will involve India encouraging Indian companies to invest in Indonesia, especially in the metals industry,” he stated.
both nations will explore opportunities to expand the metals industry into the production of equipment and capital goods through joint development.
“We also discussed the potential for further downstream processing of metals into equipment or capital goods that could be jointly developed,” Tanjung added.
The final point of discussion involved collaborative research and innovation to develop more efficient capital goods, according to Tanjung.
“India will submit a draft MoU, which we will then consult with the Ministry of Foreign Affairs regarding the framework. Following that, we will proceed with the signing of the agreement between the Minister of ESDM and the Minister of Steel of India,” he said.
Agreement with the United States
Indonesia has also reached an agreement with the United States to collaborate on trade of critical minerals. This follows the signing of an agreement on reciprocal trade (ART) by President Prabowo Subianto and U.S. President Donald Trump on Thursday, February 19, 2026, in Washington D.C. The agreement signals a growing focus on securing supply chains for essential resources.
Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that the cooperation is part of Indonesia’s national strategy to ensure critical minerals are not traded in raw form.
According to Lahadalia, the agreement will ensure foreign investment remains focused on developing domestic processing industries, supporting the nation’s industrialization policies.
“For critical minerals, we have agreed to facilitate investment by U.S. Companies, while still respecting the regulations in our country,” Lahadalia said in a written statement on Saturday, February 21, 2026.
Lahadalia firmly stated that there would be no changes to policies regarding the export of raw minerals, as the Indonesian government remains committed to its national downstreaming program and has no plans to lift the ban on raw material exports.
“Let me clarify that this does not mean we will open up exports of raw materials. What we intend is that after purification, the resulting products can be exported. Let’s be clear to avoid any misinterpretation,” he emphasized.
He cited the investment by Freeport Indonesia in a nearly US$4 billion copper smelter facility as an example of successful mineral cooperation.
Two Models of Cooperation
According to Lahadalia, the government is offering two investment schemes to U.S. Companies: direct exploration opportunities or joint ventures with Indonesian state-owned enterprises (BUMN).
“Once they begin production and build smelters or downstream facilities, they will have the right to export to America,” he added.
Beyond this, Lahadalia stated that Indonesia adheres to the principle of active free trade and will provide equal investment opportunities to all countries interested in developing its critical mineral resources.
He stressed that the government’s policies are not exclusive and are open to cooperation with all strategic global partners, based on principles of fairness and mutual benefit.
“We provide equal treatment to all countries,” Lahadalia concluded.
(hrp/hns)
