Overview

Table: Total Market Size for Mining Equipment: 2020-2023

Data Sources:  Global Trade Stats, Central Bureau of Statistics Indonesia and unofficial estimates. Average exchange rate of Indonesian rupiah to U.S. dollars from the World Bank.

Indonesia is a global player in mining.  Some estimates indicate the Southeast Asian country supplies over one-fourth of the world’s mineral supply. There is significant production in coal, copper, gold, tin, bauxite and nickel.  The archipelago nation possesses the world’s largest nickel reserves. Indonesia has ranked among the world’s third largest coal and nickel producers. To capitalize upon its mineral wealth and accelerate economic development and industrialization, the Indonesian government has banned the export of raw materials for unprocessed ores in 2020. The government has required extracted raw materials be processed domestically to final goods before being allowed for global export.  Critical minerals, such as nickel and cobalt, have an important role for electric vehicle (EV) battery production.  Billions of dollars in global capital have gone entered Indonesia to upscale downstream mineral extraction industry.  Companies are building high process acid leaching (HPAL) plants to process nickel into EV material.  

Leading Sub-Sectors

U.S. goods and services highly sought after in the mining industry are:

• Furnaces
• Drill Rigs
• Ground Penetrating Radar (GPR)
• Mining Refining Technologies and Processing Equipment
• GIS Sensing and Mapping
• Communications Systems
• Materials Extraction and Handling Technology
• Heavy equipment
• Lubricants

Opportunities

Mining projects have propelled infrastructure development across Indonesia, including related to upstream processing facilities, special economic and industrial zones, and supply chain infrastructure, such as ports.  Government priorities to downstream the industry and integrate energy efficiency are prime commercial opportunities.  Promising proposals include the development of critical mineral processing facilities to produce high-grade battery materials.    Others relate to the development of battery or energy storage in Indonesia to accelerate electric vehicle production and support decarbonization of the Indonesian economy.  Battery storage technologies bridge intermittency challenges that renewable energy sources, such as solar and wind power plants, in remote area confront.

Resources

• Ministry of Energy and Mineral Resources https://www.esdm.go.id/en
• Directorate General of Mineral and Coal Mining, Ministry of Energy and Mineral Resources https://www.minerba.esdm.go.id/
• State-owned mining holding company - MIND ID https//www.mind.id
• State-owned battery company - PT Indonesia Battery Corporation (IBC) https://www.indonesiabatterycorp.com
• ASPINDO (Indonesia Mining Service Association) https//www.aspindo-imsa.or.id
• APBI – ICMA (Indonesia Coal Mining Association) https//www.apbi-icma.org

For more information, please contact Commercial Specialist Trianie Ananda at Trianie.Ananda@trade.gov