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

April 23, 2025

The Energy and Mineral Resources (ESDM) Ministry announced the winners of the auction for five oil and gas working areas (WK), namely WK Kojo offshore Makassar Strait, WK Binaiya offshore Maluku, WK Serpang offshore East Java, WK Gaea in West Papua Province, and WK Gaea II in West Papua. The total investment commitment collected reached US$21.7 million (Rp364 billion at Rp16,800 per US$1).

"The total investment commitment for the first three years of exploration in the five WKs is US$21.7 million," said Acting ESDM Ministry Oil and Gas Director General Tri Winarno stated in a virtual announcement on Apr. 16, 2025.

Armada Etan Limited is the winner of the auction for WK Kojo, which has total estimated oil reserve of 90.2 million barrels of oil and 2.1 trillion cubic feet (ft3) of gas. The firm's total commitment for the first 3 years of exploration is US$2.1 million.

Next, a consortium of PT Pertamina subsidiary PT Pertamina Hulu Energi (PHE), Petroliam Nasional Berhad (PETRONAS) subsidiary PC North Madura II, and SK Innovation Co., Ltd. subsidiary SK Earthon Co. won  the WK Binaiya auction, with their total commitment for the first thre years of exploration at US$6.5 million. The working area's oil and gas reserves are estimated to reach 6.7 billion barrels of oil and 15 trillion ft3 of gas.

Then, the winner of the WK Serpang ​​auction is a consortium of PC North Madura II, INPEX Corporation, and SK Earthon Co, with their total commitment for the first three years of exploration reaching US$4.7 million. The total estimated oil and gas reserves of the working area reaches 1.2 billion barrels of oil and 6.3 trillion ft3 of gas.

Finally, the winner of the auctions for WK Gaea I and WK Gaea II is a consortium of Enquest Petroleum Production Malaysia, PT Agra Energi, BP Exploration Indonesia, MI Berau, CNOOC Southeast Asia Limited, ENEOS Xplora, Indonesia Natural Gas Resources Muturi, and KG Wiriagar Petroleum.

The total commitment for the first three years of exploration in WK Gaea I reaches US$4.95 million, with the working area's estimated oil and gas reserves reaching 9.6 billion barrels of oil and 71.8 trillion ft3 of gas. Meanwhile, the total commitment for WK Gaea II is US$3.45 million for the estimated oil and gas reserves of 8.5 billion barrels of oil and 35.1 trillion ft3 of gas.

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