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.
View moreOther Sectors
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
Surging global oil prices and tightening domestic fuel supplies have thrust Indonesia’s long-running electrification agenda back into the spotlight. Policymakers are increasingly portraying the shift, especially in the motorcycle sector, as the most practical and immediate way to curb fuel consumption. As part of this, the government is raising targets for its electric motorcycle conversion program, aiming to gradually electrify more than 120 million gasoline-powered motorcycles nationwide.
Energy and Mineral Resources Minister Bahlil Lahadalia explains that the government plans to significantly accelerate the fuel-to-electric motorcycle conversion program, also known as the retrofit program, to approximately 6 million units per year, a sharp increase from the current annual target of about 200,000 units. The expansion, he noted, is supported by advances in conversion technology that make large-scale implementation more feasible.
To support the accelerated rollout, the government has established a dedicated energy transition task force to coordinate implementation across ministries and agencies. The task force is expected to speed up the conversion of Indonesia’s conventional motorcycle fleet, which is estimated at around 120 million units.
The urgency behind this policy shift is underscored by the severity of the current fuel situation. Global oil prices have surged above US$100 per barrel, driven by the United States-Israeli war with Iran. This has prompted the government to consider demand-side measures to contain consumption and ease supply pressures.
Electrifying motorcycles, which remain the dominant mode of transport in Indonesia, is one of the key measures under consideration. At the same time, the government is also exploring more aggressive steps, including the possible reintroduction of nationwide work from home (WFH) arrangements to temporarily reduce fuel demand.
The oil shock has also revived scrutiny of earlier initiatives such as the Agrinas program, which aimed to import trucks and other vehicles to support the rollout of Red and White Cooperatives (KMP) across regions. Conceived prior to the recent spike in oil prices, the KMP program was designed to strengthen logistics and distribution networks at the grassroots level, with plans involving large-scale procurement of vehicles to support cooperative activities nationwide. In the current context of elevated fuel costs, however, the program’s reliance on conventional vehicles raises new questions about its economic and energy efficiency.
The situation also casts uncertainty over other automotive ambitions, including the long-discussed national car (Mobnas) initiative. While the project has been framed as part of Indonesia’s industrial and technological advancement, its direction remains unclear, particularly as the government has yet to specify whether the vehicle will be developed as an electric model in line with its broader energy transition goals or continue to rely on conventional internal combustion engine technology.
The last substantive update on the initiative dates back to last year, when state-owned defense manufacturer PT Pindad was tasked with leading the design and development of the national car. Beyond that mandate, however, little detail has emerged regarding the project’s technical specifications, production timeline or potential partners.
