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
Pos Indonesia, the country's oldest state-owned enterprise (SOE), has come under renewed scrutiny following the resignation of its president director, Daud Joseph, after only three months in office. His departure was followed by allegations of governance irregularities, including suspected manipulation of the company's financial statements, prompting state asset fund Danantara to launch an audit. The episode underscores the persistent weaknesses in SOE governance that have contributed to the sector's underperformance for years.
Joseph was appointed president director on March 11 after previously serving as operations and safety director at Transjakarta. He filled a leadership vacancy that had been occupied by an acting president director for nearly a year. On June 22, however, Joseph resigned, saying Pos Indonesia required a leader with more specialized expertise to carry out the company's transformation.
His resignation came amid a sharp deterioration in the company's financial performance. Pos Indonesia's revenue fell by 20 percent in 2025, declining from Rp 5.02 trillion (US$286 million) to Rp 3.97 trillion. This was well below the company's five-year average revenue of Rp 5.06 trillion and marked its lowest annual revenue since 2013. Consequently, gross profit declined to Rp 1.5 trillion.
The decline was driven partly by lower logistics revenue from government social assistance distribution programs, including cash, rice and food aid, which fell to only Rp 300 billion. Beyond government-related services, Pos Indonesia also recorded weaker revenue from its logistics, courier and property businesses. By the first half of 2025, the parent company had posted an operating loss of Rp 37.92 billion. Operating cash flow also remained under pressure, with a negative balance of Rp 677.52 billion, extending a trend that began in 2024.
Beyond its weakening financial performance, governance failures have created additional risks for the company. In June 2025, Pos Indonesia disclosed estimated losses of Rp 37.73 billion resulting from employee fraud, up from Rp 34.49 billion estimated at the end of 2024. Around half of the estimated losses originated from the company's Makassar regional office. These figures remain subject to an ongoing audit as investigators examine misconduct that accumulated over several years.
Employee fraud has repeatedly surfaced within Pos Indonesia, ranging from the misappropriation of social assistance funds to broader operational misconduct. Last month, authorities arrested a fugitive linked to corruption in the distribution of funds under the Family Hope Program (PKH) in Cirebon, a case that caused state losses of Rp 264.55 million. Another corruption case in Bengkulu involved the misuse of stamp duty revenue and pension funds between 2022 and 2024, resulting in estimated state losses of around Rp 3 billion.
These recurring governance failures stand in stark contrast to Pos Indonesia's financial recovery after 2019. The company successfully reversed a comprehensive net loss of Rp 104.38 billion in 2019 into a comprehensive net profit of Rp 839 billion in 2024. However, the downturn appears to have resumed, with comprehensive net income reaching only Rp 144.74 billion in the first half of 2025.
The combination of deteriorating financial performance and suspected governance failures has prompted Danantara to intervene. The sovereign wealth fund plans to appoint a new management team to restore Pos Indonesia as a financially healthy, professionally managed and accountable company. Since its establishment, Danantara has consistently emphasized improving governance standards across SOEs by strengthening financial reporting and enforcing accountability for misconduct.
Nevertheless, the impact of these reforms has yet to become evident. Several major SOEs, including MIND ID and Telkom Indonesia, reported weaker financial performance in 2025. Questions have also emerged over Danantara's own reporting practices. For example, Danantara reported Bank Rakyat Indonesia's (BRI) profit at Rp 21.2 trillion for the first four months of this year, while the bank's official financial statements recorded net profit of Rp 15.9 trillion, raising concerns about data consistency and transparency.
The problems at Pos Indonesia should therefore not be viewed as an isolated corporate failure, but as a reflection of longstanding structural weaknesses in Indonesia's SOE governance framework. Unless these underlying issues are addressed, governance reforms under Danantara are unlikely to deliver lasting improvements in SOE performance.
