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 corruption scandal engulfing the National Nutrition Agency (BGN) has significantly amplified public skepticism toward President Prabowo Subianto’s flagship free nutritious meal program. What began as policy criticism has since escalated into street protests.
By late June 2026, the Attorney General’s Office (AGO) had named six suspects in an alleged graft case involving the governance of the program for the 2025–2026 fiscal years. The suspects include three former senior BGN officials, alongside Asep Yusuf Somantri, a close associate of former BGN deputy head Sony Sonjaya; Andri Mulyono, a commissioner at PT Yasa Artha Trimanunggal; and Glory Harimas Sihombing, chairman of the Indonesia Food Security Review Foundation.
The investigation deepened when Sonjaya reportedly disclosed 41 names allegedly involved in the illicit trading of Nutrition Fulfillment Service Unit (SPPG) locations. While Sonjaya sought justice collaborator status, prosecutors rejected the request, arguing that he functioned as a principal actor rather than a secondary participant capable of exposing higher-ranking figures. Meanwhile, the AGO has left open the possibility of questioning the newly appointed BGN head, Naniek S. Deyang. Because Deyang previously served as the agency's deputy head, her promotion has drawn sharp scrutiny from observers who argue that promises of institutional reform ring hollow when leadership changes amount to little more than an internal reshuffle.
Constitutional review petitions challenging the diversion of education funds for the free meals program are currently being examined by the Constitutional Court. Chief Justice Suhartoyo indicated that the court aims to conclude its review of the three petitions by the end of June, with formal rulings expected in July. This judicial process will be pivotal, not only for determining the legitimacy of this specific funding mechanism but also for clarifying the limits of executive discretion over constitutionally protected public resources.
As these legal battles unfold, public opposition on the ground has intensified. Dissatisfaction has manifested in a wave of nationwide demonstrations, accompanied by broader criticism of President Prabowo's governing style, which protesters link to contemporary economic hardships. This unrest has mobilized diverse coalitions of students, women's groups and civil society members across major urban centers, including Makassar, South Sulawesi; Denpasar, Bali; Bandung, West Java; Semarang, Central Java; and Jakarta.
Political researchers argue that this widespread friction cannot be uncoupled from perceptions of an increasingly centralized, top-down governance model. The fact that dissent now extends well beyond traditional student movements suggests that concerns over the program are no longer confined to political activists, but are resonating deeply at the grassroots level.
Conversely, a distinct counter-mobilization has surfaced. Employees and operators of the SPPGs recently rallied near the National Monument in Jakarta to voice their support for the initiative. Teachers, students, kitchen staff and service unit owners participated in the demonstration, emphasizing the program's tangible nutritional benefits and demanding its uninterrupted continuation.
However, political observers caution against interpreting these pro-program rallies as entirely spontaneous expressions of public goodwill. Governments facing crises of legitimacy have historically relied on structured counter-narratives and organized support bases to reshape public perception.
The timing of these pro-free meals demonstrations is also telling, coinciding with the BGN's decision to temporarily suspend the program during the 18-day school vacation period. During this hiatus, SPPG operators forfeit the Rp 6 million (US$335) daily operational incentives typically provided by the government.
Even if support for the continuation of the program is entirely authentic, it is heavily viewed through the lens of economic self-interest. This shifts the broader debate surrounding who truly represents the program’s rightful beneficiaries. While the initiative was originally designed to improve childhood nutrition and elevate educational outcomes, the controversy has increasingly centered on the commercial actors embedded within its implementation chain.
