Sector
Mining
Indonesia, a country rich in natural resources, boasts a mining sector that is undeniably one of its leading sectors. With vast reserves of mineral and non-mineral mining resources, the country stands as a global powerhouse in the mining industry. As of 2022, Indonesia’s mining industry contributed Rp2.3 quadrillion to the national GDP, accounting for 12.22 percent.
View moreOther Sectors
Mining
Indonesia, a country rich in natural resources, boasts a mining sector that is undeniably one of its leading sectors. With vast reserves of mineral and non-mineral mining resources, the country stands as a global powerhouse in the mining industry. As of 2022, Indonesia’s mining industry contributed Rp2.3 quadrillion to the national GDP, accounting for 12.22 percent.
Mining flourishes across various regions of the country, each contributing to the nation’s economy. It is present in regions such as South Sumatra, Riau, Riau Islands, Bangka-Belitung, Central Kalimantan, East Kalimantan, South Kalimantan, and North Kalimantan. Additionally, mining is also prevalent in Southeast Sulawesi, Central Sulawesi, West Nusa Tenggara, North Maluku, Papua, and West Papua.
Indonesia’s wealth of mineral resources offers a wide variety of materials available for mining. From abundant reserves of gold, bauxite, tin, and copper concentrates to nickel ore, the country’s rich mineral resources signify significant potential for economic growth and development. In addition, Indonesia is also rich in coal mining, with its abundant coal reserves catering to the energy needs of both domestic and international markets.
The country's mining sector thrives on these resources. In 2023, mineral resources such as bauxite reached a production of 28 million tons, gold at 85 thousand kilograms, tin concentrate at 57 thousand metric tons, copper concentrate at 3 million metric tons, along with nickel ore at 98 million metric tons.3 Meanwhile, Indonesia’s coal production reached 775.2 million tons in 2023, almost double than ten years earlier when coal production stood at 421 million tons.
Additionally, Indonesia is home to oil and gas exploration and exploitation, although its output has been dwindling. Once an exporting country of oil and gas, Indonesia has transitioned into a net importer of these commodities since 2008 when consumption surpassed outputs, which stood at around 1 million barrels per day (bpd). In the first semester of 2023, Indonesia’s oil output stood at 615 bpd.
Subsequently, the government has worked hard to reverse the trend of falling oil output and has set a target to restore oil lifting to 1 million bpd in 2030, alongside a gas production target of 12 billion standard cubic feet per day (BSCFD). As of January 2023, Indonesia’s documented oil reserves were 2.41 billion barrels, and its natural gas reserves stood at 35.5 trillion cubic feet.
As for investments, Indonesia secured US$30.3 billion for the energy and mining sector in 2023, marking an 11 percent increase from the previous year. That same year, the oil and gas sector led the way,
achieving US$15.6 billion in investments, followed by mineral and coal at US$7.46 billion, electricity at US$5.8 billion, and renewable energy at US$1.5 billion.
Latest News
The first batch of Indonesians evacuated from war-besieged Iran landed back home on March 11, after an overland journey that took them through Azerbaijan and Turkey before they were flown to Jakarta. Following this group of 22 people will be a few more batches in the coming days and weeks as citizens flee the ongoing United States-Israelis attacks.
This successful first evacuation attests to the government’s current plan to transport its citizens to safety from conflicts around the world.
More than 300 Indonesians, mostly university students, were living in Iran when the latest round of US-Israeli attacks began on Feb. 28. With the war not only escalating but also widening to involve more Gulf countries, the government may face its biggest test regarding its evacuation contingency plan, which is yet to be activated.
The government says more than 500,000 Indonesians live and work in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates; countries that are being dragged into the war because they host US military bases.
The real number could be much higher, since many Indonesians don’t register with the embassies or consulates in these countries. The bulk of Indonesians who reside in the Middle East are domestic helpers or construction workers, but there are also some white-collar workers, including oil professionals.
If the government is prompted to activate its contingency plan, the scale will likely be much higher and more complicated than it has ever experienced before, given that the geography of these countries offers limited escape routes.
The Foreign Ministry, which leads the interagency team for managing evacuations, says it has formed a crisis response team to prepare for this eventuality so the government can move quickly if security conditions deteriorate further. This crisis team involves the military, including the Air Force, which in the past has deployed transport planes to evacuate citizens from troubled spots like Afghanistan, Egypt, Iraq and Ukraine.
Meanwhile, embassies in the region have been ordered to closely monitor the situation and alert the government if and when the plan needs to be activated.
Santo Darmosumarto, the ministry's director general of Asia, Pacific and Africa, said several Gulf governments had asked Indonesia not to activate its evacuation plan. While they did not provide any guarantees, they asked that expatriate Indonesians stay home to stay safe.
In the end, however, this is ultimately Indonesia’s call and not the host nations'. On the other hand, the US ordered on March 8 that nonemergency government employees and their dependents leave Saudi Arabia, and many of its travel advisories may give a clue about the scale of the danger.
The ministry says it has not received any report of Indonesian fatalities from the current war in the Middle East, though three Indonesian sailors are missing after a tugboat explosion the Strait of Hormuz. Another seaman who survived the explosion in the world’s busiest shipping corridor, which has now been crippled by war, is being treated at a hospital in Oman.
The Foreign Ministry and overseas missions in the Gulf region have also been busy arranging the repatriation of thousands of citizens stranded due to canceled or delayed flights and airport and airspace closures as the conflict escalates.
When the war began on Feb. 28, more than 50,000 Indonesians were performing umrah (minor pilgrimage) to Mecca, to which the country contributes over 1.2 million pilgrims each year. The government has been working with tour operators and airlines since to ensure their safe return, with embassies providing them temporary accommodation.
Following the issuance of a government advisory to postpone nonessential travel to the region, tens of thousands of Indonesians canceled their departure for umrah. The war is now looming large over the scheduled haj in May, in which more than 200,000 Indonesians are registered to take part.
The best-case scenario as far as Indonesian civilians are concerned is, of course, for the war to end soon. But the government has made preparations for the worst-case scenario: a full-scale war that could put more than half a million Indonesian lives in danger.
The bigger question is whether the current evacuation contingency plan will suffice.
