Indonesia's critical minerals: A wealth beyond measure, but sustainability awaits

Indonesia, with its rich deposits of critical minerals, stands poised at the forefront of the global supply chain, particularly in the burgeoning electric vehicle (EV) market. The 2024 US Geological Survey report underscores Indonesia's dominance, placing it first worldwide in nickel reserves, which are crucial for EV batteries.

Additionally, Indonesia ranks among the world's top tin producers, an essential component in smartphone manufacturing. Beyond nickel and tin, Indonesia's mineral wealth includes significant deposits of cobalt, bauxite, and copper.

Indonesia has trade restrictions on bauxite and nickel. In 2020, the nation prohibited the export of nickel, and in 2023, it banned the export of bauxite. Indonesia has previously planned to impose a ban on exports of copper concentrate beginning on June 1. But the ban's start will now be postponed to December 31, 2024.

These statistics often feature prominently in government efforts to attract foreign investment. Officials argue that Indonesia's abundant mineral reserves could facilitate its entry into the global supply chain for green technology. However, a recent report from the think-tank CSIS Indonesia suggests that the country must go beyond merely showcasing its mineral wealth.