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
The presence of the Indonesia Morowali Industrial Park (IMIP) Private Airport in Morowali Regency, Central Sulawesi, has sparked controversy after Defense Minister Sjafrie Sjamsoeddin asserted that the facility operates without proper state oversight. The issue appears to reflect a broader debate among state institutions, revealing friction between figures from the previous administration and the current government.
Sjafrie issued a stern warning regarding the private airport, emphasizing that the government would not allow the industrial zone to operate as a "state within a state".
He made this statement after attending the Joint Command Exercise of the Indonesian Military (TNI) at the IMIP area on Nov. 19–20. He stressed that the government intends to overhaul the management of the airport to ensure full state compliance.
President Prabowo Subianto has named Sjafrie the head of the Forest Area Regulation Task Force, whose mandate is to restore forest areas impacted by unauthorized mining and plantations. Any land occupied by companies operating illegally within forest zones is to be reclaimed by the state.
Amid this enforcement effort, IMIP has drawn scrutiny for its reputation as an exclusive enclave, often inaccessible even to residents. Green groups have also linked the industrial estate to the severe environmental degradation and health problems in the regency.
PT IMIP operates the industrial park, which spans approximately 2,000 hectares. The area hosts more than 50 companies, primarily ferronickel processors. Since its establishment in 2013, three entities have been listed as shareholders: Shanghai Decent Investment (Group), PT Sulawesi Mining Investment and PT Bintang Delapan Investama.
The IMIP Private Airport, developed to support this Chinese-backed industrial estate, has long been suspected of serving as a discreet entry point for foreign workers employed in Morowali's mining operations.
Technically, the airport received operational approval during the administration of president Joko "Jokowi" Widodo, alongside the rapid development of nickel-processing operations in the region.
Former coordinating maritime affairs and investment minister Luhut Binsar Pandjaitan defended the airport, stating its presence is reasonable given that Chinese investors have injected US$20 billion into the area. He stressed that the airport is designated solely for domestic flights and, therefore, does not require customs or immigration services under prevailing regulations.
The friction highlights a clash of titans: both Luhut and Sjafrie are former Army generals. Luhut is a known loyalist of former president Jokowi, while Sjafrie is closely aligned with Prabowo.
According to reports compiled by AirNav Indonesia and the Transportation Ministry, the IMIP Airport has never served international flights, and its operations remain compliant with existing regulations.
Notably, this report was co-prepared by the Indonesian Air Force, an institution under Sjafrie's supervision. This suggests that data contradicting the minister's concerns was available within his own sphere of influence prior to his public critique.
Deputy Transportation Minister Suntana has also affirmed that the airport is legally recognized and holds a valid operational permit.
However, the situation is complicated by a bureaucratic flip-flop. The Transportation Ministry temporarily granted the airport permission to operate direct international flights via Transportation Minister Decree No. KM 38/2025 on Aug. 8. This approval was revoked shortly after by Decree No. KM 55/2025 on Oct. 13, yet the revocation was only publicized recently after the controversy erupted.
This sequence has raised questions, if IMIP Private Airport was intended solely for domestic operations, why was it ever granted international flight authorization, however briefly?
The temporary permit drew sharp criticism from Central Sulawesi Governor Anwar Hafid, who argued that private airports should not be eligible for international status. He reiterated that Mutiara Sis Al Jufri Airport in Palu City is the province's only designated international gateway.
Anwar further noted that oversight authority for the IMIP airport lies exclusively with the Transportation Ministry, making it difficult for regional authorities to monitor activities on the ground.
Despite the confusion, the Transportation Ministry maintains that between Aug. 8 and Oct. 13, the IMIP Private Airport did not serve any international flights.
