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 13, 2026

For months, President Prabowo Subianto has been crafting his own strategic approach to the Middle East, often departing from some of Indonesia’s traditional foreign policy principles, including on the question of establishing relations with Israel. Central to this strategy was joining the Board of Peace (BOP) set up by United States President Donald Trump in January, a move widely criticized at home as abandoning Indonesia’s long-held support for Palestinians in their long struggle for an independent state.

When Israel and the US launched coordinated attacks against Iran in late February, Prabowo remained adamant about Indonesia’s BOP membership. He even ordered the Indonesian Military (TNI) to ready some 8,000 soldiers to join the US-led International Stabilization Force (ISF) for deployment in Gaza to enforce peace in the tiny Palestinian enclave which had been devastated by more than two years of constant bombings by Israel.

Now the deaths of three TNI members who were part of the United Nations’ peacekeeping force in Lebanon may force Prabowo to rethink his entire approach to the Middle East.

Early investigations by the United Nations point the finger to Israel’s attacks in Lebanon as the cause of their deaths. Sending troops to Gaza could be a futile exercise, even described as suicidal by one critic, since this mission does not have the usual UN mandate.

Opposition to Prabowo’s novel approach to the Middle East is now growing among the general public when previously it had been confined to a small clique of Indonesia’s foreign policy community. He can no longer afford to ignore public opinion.

Prabowo, a former Army general, knows full well the risks that he is exposing Indonesian troops to if they are sent to Gaza. Before he commits more troops to the Middle East, the Indonesian public are demanding explanation and accountability for the deaths of three TNI members. Some have even called on the government to move out of harm’s way the remaining Indonesian troopers working for the UN Interim Force in Lebanon (UNIFIL), given Israel’s intensifying attacks in Lebanon.

The US war in Iran also exposed a major flaw in Prabowo's Middle East strategy. His initiative to offer to mediate peace immediately when the war started went largely ignored. In spite of his frequent trips to the Middle East to raise Indonesia’s profile in the region as peacemaker, he had completely ignored Iran. Instead, Tehran and Washington chose Pakistan, also a BOP member, to broker the two-week truce last week to avert a more catastrophic war.

Indonesia under Prabowo has also refrained from condemning the US attack on Iran, just as it did with the earlier US invasion of Venezuela, as a violation of international laws. Instead, Indonesia’s statement went only as far as expressing deep regrets. Prabowo needs to appease Trump, certainly avoid upsetting him, to have any chance of a mediating role in the Israel-Palestinian conflict, which seems central to his Middle East strategy.

Where Prabowo departed from Indonesia’s traditional policy in the Middle East is on the question of ties with Israel. Although he has insisted that Indonesia will not open diplomatic relations with Israel until Palestinians gained their independent homeland under the two-state solution, critics say joining the BOP would inevitably means sitting on the same table with Israel’s Prime Minister Benjamin Netanyahu, or his representative as was the case at the inaugural BOP meeting in Washington in February.

In his debut speech at the United Nations General Assembly in September, Prabowo went furthest on the issue than any Indonesian leader has when he stated that Indonesia is ready to recognize Israel and provide security guarantee if it accepts the two-state solution.

Supporters of Prabowo’s Middle East strategy say that several other Muslim-majority countries, including Egypt, Jordan, Turkey and Morocco, have diplomatic relations with Israel to afford them direct communication and express concerns or convey protests. The absence of such direct contacts, so they argue, prevent Indonesia from playing a more active role in the search for peace between Israel and Palestine.

Prabowo has defended his decision to join the BOP, apparently against the advice of his top diplomats, as the only way to stop Israel killing Palestinians in Gaza. Critics however say that the killings have continued in spite of Israel agreeing to President Trump’s Gaza peace plan in October. More than 700 Palestinians have been killed in the Gaza Strip since then, bringing the total to over 70,000 deaths, including many women and children, since Israel launched the military operation in October 2023.

At any rate, the war in Iran has put the BOP work in Gaza on hold, including the deployment of the ISF to enforce the peace agreement. The pause gives Prabowo time to rethink his entire Middle East strategy, which may include exiting the BOP, since three Indonesian soldiers have been killed, most likely by Israel.

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