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 Attorney General’s Office (AGO) has struck a significant agreement with major cellular service providers in Indonesia, granting it access to users’ private information for law enforcement purposes. While the reasons for the deal look convincing, the development raises serious concerns about potential violations of fundamental citizen rights and may conflict with a Constitutional Court ruling regarding surveillance and wiretapping.
The strategic agreement came on the heels of public scrutiny over the AGO in May, when Indonesian Military (TNI) personnel were deployed to secure prosecutors’ offices nationwide and ensure operational continuity.
On June 25, deputy attorney general for intelligence Reda Mantovani formalized the collaboration by signing a memorandum of understanding with PT Telekomunikasi Indonesia, PT Telekomunikasi Selular (Telkomsel), PT Indosat and PT XL Axiata. Reda explained the cooperation was vital for the intelligence division, supporting law enforcement through investigations, security operations and engagement initiatives. This includes installing and operating surveillance devices and providing telecommunications data records.
The AGO asserts that Article 30B of Law No. 11/2021, which amends Law No. 16/2004 on the prosecutor’s office, provides the legal basis for overseeing multimedia activities. Reda also claimed that this collaboration guaranteed the collected data and information were of indisputable quality and validity, meeting the A1 intelligence classification.
With Telkomsel remaining Indonesia’s largest mobile service provider with 159.9 million subscribers as of September 2024, followed by Indosat Ooredoo Hutchison (100.9 million) and XL Axiata (93.3 million), the memorandum has ignited significant privacy concerns. The AGO’s wiretapping authority lacks independent oversight, increasing the risk of abuse of power, especially since the prosecutorial service operates as an executive branch instrument under the current administration.
The law equips law enforcement agencies, the AGO, the police and the Corruption Eradication Commission (KPK), with surveillance power, but so far only the KPK has remained free of abuse. The eavesdropping authority has proved to help the KPK catch big names who previously enjoyed impunity.
There were also reports of alleged abuse of wiretapping power involving the police, as in the instances of arrest or phone hacking targeting government critics.
House of Representatives Speaker Puan Maharani, from the Indonesian Democratic Party of Struggle (PDI-P), underscored the crucial balance needed between law enforcement efforts and protecting citizens’ constitutional rights. She further emphasized the importance of building public trust in legal institutions by ensuring adherence to legal boundaries.
In a similar tone, Nasir Djamil, a member of House Commission III overseeing the AGO, questioned the memorandum, recalling Constitutional Court Decision No. 5/PUU-VIII/2010, which mandates that surveillance and wiretapping must be governed by a specific law. He noted that despite multiple invitations to stakeholders, a proposed Wiretapping Law had yet to enter formal legislative discussions.
Moreover, this agreement threatens individuals’ personal data rights, which are legally protected by the principle of data subject consent. This means the AGO could access private data held by telecommunications companies under the pretext of law enforcement.
With approximately 300 million mobile users in Indonesia potentially affected, there is a real risk of mass surveillance being conducted without the tight regulations, court permission and limited timeframes that such actions should legally require.
