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.

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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

September 22, 2026

Agus Harimurti Yudhoyono's recent political messaging can be interpreted as an attempt to achieve a delicate balancing act: positioning himself and the Democratic Party as a critical voice within government without crossing the line into outright opposition. It is a strategy born from both opportunity and necessity. For Agus, the political challenge is obvious. While he remains one of Indonesia's most recognizable younger politicians, he has not consistently appeared among the top-tier contenders in most discussions about the 2029 presidential election.

The dominant attention has largely been focused on figures with stronger executive credentials, deeper political machines or higher public popularity. If Agus hopes to become a serious presidential contender, maintaining the status quo is not enough. He needs greater visibility, a more distinct political identity and a narrative that separates him from the many parties supporting the government.

This helps explain the significance of his speech. Rather than offering unconditional praise for the administration, Agus appeared to emphasize themes of accountability, governance and the need for those in power to remain responsive to public concerns. The message was notable not because it represented a complete break from the government, but because it subtly challenged the perception that coalition parties must always defend the administration's every move.

The strategy serves multiple purposes. First, it allows the Democrats to reclaim part of their traditional identity as a centrist reformist party. Since joining the governing coalition, the party has enjoyed access to government but has also risked losing its distinctiveness. In a broad coalition dominated by larger political forces, smaller parties can easily become politically invisible. By adopting a more critical tone, the Democrats can remind voters that it possesses an independent voice.

Second, it helps 48-year old Agus personally. Indonesian presidential politics tends to reward leaders who appear decisive and independent rather than excessively dependent on existing power structures. If Agus is perceived merely as another coalition politician benefiting from office, his appeal may remain limited. If he can present himself as a leader willing to speak uncomfortable truths while still acting responsibly, his profile could improve significantly ahead of 2029.

The danger for Agus is that repeated efforts to distinguish himself could eventually be interpreted by coalition partners as positioning for a future campaign at their expense. If that perception grows, the Democratic Party could find itself marginalized in decision-making, deprived of influence or ultimately pushed toward the political sidelines. Even without formal expulsion from the coalition, a party can become isolated and lose much of the practical advantage that comes from being part of government.

Yet political history suggests that such an outcome may not necessarily be disastrous. The most relevant example comes from Agus’ own father, Susilo Bambang Yudhoyono (SBY). During the administration of President Megawati Soekarnoputri, SBY served as coordinating minister for political and security affairs. As tensions emerged between him and elements within the government, he increasingly appeared marginalized. His resignation and departure from the cabinet were widely interpreted as signs of political isolation.

At the time, many viewed that isolation as a setback. Instead, it became a turning point. SBY successfully transformed himself into an alternative to the incumbent establishment. By portraying himself as a capable insider who was nevertheless willing to challenge the status quo, he appealed to voters seeking change without revolutionary disruption. In the 2004 presidential election, he defeated Megawati and became Indonesia's first directly elected president.

The parallel is not exact. The political environment of 2029 will differ significantly from that of 2004. SBY entered the race with substantial public popularity, military credentials and a national profile developed through years of government service. Agus has yet to achieve a similar level of political strength. Furthermore, Indonesia's party system today is more fragmented and coalition-based than it was two decades ago.

Nevertheless, the historical lesson remains relevant. Being pushed away from power is not always politically damaging. In some circumstances, it can become a political asset if it allows a leader to embody both experience and independence. This may ultimately be the calculation behind Agus’ approach. The ideal scenario is to gain the benefits of both worlds: remain inside the governing coalition, enjoy access to executive power and simultaneously cultivate an image as a principled critic. That would increase his visibility without sacrificing influence.

The problem is that such a balance is extremely difficult to maintain. For Agus, the coming years may therefore be defined by a central political question: can he successfully become Indonesia's most prominent "critical insider," or will his attempt to create distance from power eventually force him to choose between government influence and opposition credibility?

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