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
There is renewed hope for police reform following President Prabowo Subianto’s approval of the police reform committee’s recommendations. Although several points merely preserve the status quo, the recommendations also call for more substantive action, particularly a revision of the 2002 National Police Law.
On May 5, the President approved the six-point reform recommendations proposed by the police reform committee. This marks an important milestone following his long-awaited pledge to reform the National Police, coming shortly after the committee completed its work in early March.
Of the six recommendations, two largely maintain existing arrangements. First, the National Police will remain an institution directly under the president rather than being moved under a ministry. Second, the appointment of the National Police chief will continue through the confirmation hearing mechanism in the House of Representatives.
The third recommendation is more consequential. It seeks to strengthen the National Police Commission (Kompolnas), the government-sanctioned oversight body, by granting it broader authority to hold officers accountable and by removing ex officio seats for government officials. Kompolnas needs to be institutionally strengthened so that it possesses investigative authority and the capacity to issue binding recommendations. At present, the body can only provide non-binding advice to the president, which limits its effectiveness as an accountability mechanism.
Committee chair Jimly Asshiddiqie argued that the National Police’s direct accountability to the president must be balanced by strengthening Kompolnas as an independent institution. This reflects a fundamental governance principle: concentrated executive authority requires equally robust oversight to prevent the abuse of power and ensure democratic accountability.
The fourth recommendation is equally essential because it directly affects the public: the demilitarization of the National Police’s work culture. Demilitarization involves more than just reducing the excessive use of force; it requires transforming organizational culture, command structures and public engagement strategies. The goal is to ensure policing becomes more civilian-oriented and rights-based.
The fifth recommendation concerns tighter regulations governing the placement of police officers in civilian posts, such as ministries and state agencies. This issue has long been debated because the expansion of police influence into civilian institutions risks blurring the boundaries between security functions and civilian governance. Stronger limitations are necessary to preserve democratic checks and balances.
Finally, the sixth recommendation proposes eliminating the “special quota” pathway in police recruitment. This reform is significant because recruitment systems shape the long-term integrity of the institution. Privileged pathways often perpetuate patronage networks, systems where power is used to benefit specific groups and undermine meritocracy. A more transparent system would improve institutional credibility and reduce opportunities for favoritism.
Taken together, these recommendations require serious political commitment to be effective. The House has stated its readiness to discuss revisions to the National Police Law, as the bill is already included in this year’s National Legislative Program (Prolegnas) priority list. Lawmakers have noted that the committee’s findings will serve as the foundation for these upcoming deliberations.
