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

May 12, 2026

With little fanfare, Indonesia’s labor movement has joined President Prabowo Subianto ’s big coalition government, giving it an inside track in the corridors of power to fight for its interests. Although some might argue that it has been co-opted to blunt the movement.

On May 1, Prabowo joined a huge labor rally at the National Monument (Monas) Square opposite the Presidential Palace complex in Central Jakarta, and top union leaders happily embraced him on stage. A week earlier, the President recruited prominent labor activist Muhammad Jumhur Hidayat to his cabinet, though as minister for the environment rather than for labor.

Labor is the missing piece in Prabowo’s big tent coalition government comprising not only most of the political parties, but also major special interest groups, particularly business, Islam, the police and the Indonesian Military (TNI). Time will tell whether joining the coalition means more leverage for the labor movement, or simply co-option.

May 1 is now celebrated in Indonesia as a national holiday and a time for labor unions to show their teeth by holding rallies throughout the country.  The one at Monas, attended by hundreds of thousands, was the largest, though not the only one that took place that day.

If past presidents avoided May Day rallies, Prabowo has embraced them. He joined leaders from more than 20 unions on stage and even seen sang some of the Indonesian words to “L’Internationale”, the anthem of the global labor movement. He chanted “Long live labor, long live Indonesia!”, and raised his fist in solidarity with workers.

He took off his safari shirt and threw it to the crowd, and when reduced to a black undershirt, spent the next 15 minutes hugging and shaking hands with the crowd. The workers responded in kind while the song “Kowe Cen Istimewa” (Javanese for “You Are Special”) played in the background. He gave out t-shirts to celebrate Labor Day with the inscription “For you my country, our body and soul” produced by the Palace.

Prabowo has delivered on some of his promises. The bill on the protection of domestic workers, a promise he made at last year’s May Day rally, was endorsed by the House of Representatives in April. In November, he named Marsinah, a woman labor activist murdered by the TNI in 1993, a national hero. On May 1, as a Labor Day gift, he issued a presidential regulation limiting online companies that run ride-hailing services to 8 percent in commission, instead of the going rate of 20 percent, making sure that riders get 92 percent of their fares.

It is too early to conclude that Prabowo is a “pro-labor” president, as against the “pro-business” label given to past presidents. His cabinet is still staffed by many business types.

The former Army general has departed from the TNI tradition of viewing labor with suspicion, as representing the communist ideology. The government only recognized May 1 as Labor Day, and made it a national holiday, in 2013.

The labor movement in Indonesia politically remains small and weak, a reason why past presidents could afford to ignore it or gave only token participation in their governments. The movement has suffered from low unionization rates and fragmentation into groups that often compete against one another.

Statistics Indonesia (BPS) says the size of Indonesia’s workforce was 155 million out of a working-age population of 220 million as of February. Estimates of how many workers are members of labor unions range between 4 and 13 percent. The Manpower Ministry says there are 21 labor confederations, 198 federations and more than 12,000 union shops. The bulk of Indonesian workers, more than 60 percent, are in the informal sector, and not covered by unions.

The ineffectiveness of the labor movement was grossly exposed when the government of president Joko “Jokowi” Widodo swiftly pushed the Job Creation Law through the House in 2023, with little opposition from labor. Despite its name, the legislation is designed to give more concessions to investors, often at labor’s expense.

Several unions have elevated themselves into political parties, but they never got far in elections. Labor is simply not popular among voters.

Their fragmentation means that not all labor groups have joined the Prabowo administration. On May 1, several groups organized a separate rally in Jakarta outside the Senayan Legislative Complex in Central Jakarta to press their demands, including repealing the Job Creation Law, ending outsourcing and better protection for workers who are laid off.

With reports of more companies planning to lay off workers, embracing the labor movement may be not such a bad idea for President Prabowo.

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