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
Once considered a symbol of Indonesia's future, Nadiem Makarim has experienced a dramatic fall from grace.
The Attorney General’s Office (AGO) recently alleged he presided over losses amounting to Rp 1.8 trillion (US$110 million) during his tenure as education, culture, research, and technology minister from 2019 to 2024.
The 41-year-old Ivy League graduate comes from a prominent family. His father, Nono Anwar Makarim, is a renowned anti-corruption lawyer, while his maternal grandfather had been an independence fighter. The indictment has severely damaged the family's reputation.
Before his political career, Nadiem rose to prominence as the founder of the Gojek application, Indonesia's first "unicorn" start-up and a major innovation of the 2010s. He leveraged the digital revolution to transform local motorcycle services into an integrated mobile platform for ride-hailing and food delivery.
When he left his role as Gojek CEO in 2019 to join former president Joko “Jokowi” Widodo's cabinet, he brought his digitalization-focused mindset to reform the education sector, despite having no prior experience. His digitalization-focused mindset is ironically now at the heart of the allegations.
Nadiem is one of several former ministers from the previous administration currently facing corruption allegations. The Corruption Eradication Commission (KPK) said on Wednesday it was targeting the “top leadership” of the Religious Affairs Ministry in its investigations into alleged corruption over the haj pilgrimage 2023–2024 quota.
The illegal flow of money from the sale and purchase of quotas is suspected to have benefited various intermediaries, including officials at the highest level.
The KPK had apparently been referring to former religious affairs minister Yaqut Cholil Qoumas. As part of the investigation, Yaqut has been barred from leaving the country.
The AGO has accused Nadiem of abusing his authority by mass-procuring Google Chromebook laptops without a proper tender process.
The AGO cited a feasibility study by his predecessor, Muhadjir Effendy, which concluded that the Chromebook laptops would be ineffective in remote and rural areas without reliable internet access.
Nadiem and his legal team have denied the allegations, saying he received no money from the program and that 97 percent of the Chromebooks were successfully delivered. He also claimed none of the 1.2 million laptops were sent to remote or rural areas lacking internet access.
Nadiem's attorney, Hotman Paris Hutapea, appealed to President Prabowo Subianto to intervene on Nadiem’s behalf.
However, this offer was rejected by the Presidential Communications Office head, Hasan Nasbi, who said the President would allow law enforcement to conduct their work.
Meanwhile, Nadiem has more issues to worry about. The KPK has launched a separate investigation into the education ministry’s exclusive use of Google Cloud services during the COVID-19 pandemic.
At the time of Nadiem's ministerial appointment, Google provided a US$100 million investment in Gojek, fueling suspicions of a conflict of interest.
Furthermore, the AGO found an August 2019 group chat, showing discussions with his future staff for a digitalization program centered on Chromebook laptops, which had already been deliberated before Nadiem became minister.
While Nadiem’s aspiration for a digitalization program had been wise, his haste and failure to follow proper tender processes have led to growing suspicion of a conflict of interest.
With law enforcement agencies now pursuing Nadiem, it is unclear whether Prabowo will use his prerogative to exonerate him. Prabowo has previously exonerated former trade minister Thomas “Tom” Lembong and Indonesian Democratic Party of Struggle (PDI-P) secretary-general Hasto Kristiyanto.
While those two cases had political undertones due to their rivalry with Jokowi, Nadiem has avoided public disputes with the former president.
This has led to speculation that his case may just be an example of greed.
