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

September 17, 2026

Indonesia’s recurring wildfires have once again spiraled into a crisis that reaches far beyond its forests and peatlands. As dense haze shuts down schools, endangers public health, and chokes local economies at home, smoke from fires across Sumatra and Kalimantan has drifted across national borders, blanketing parts of Singapore, Malaysia, Brunei, and the Philippines. What has long been treated as an unfortunate, seasonal environmental headache is morphing into a thorny test of governance, and an escalating diplomatic liability for Jakarta.

The scale of this year’s burn is staggering. Data from Nusantara Atlas shows a dramatic surge in cumulative hotspots in late August, leaping from 190,571 on Aug. 22 to 294,699 just a day later. By Sept. 10, that tally had topped 301,990, with Kalimantan recording the highest density of active blazes. The emissions tell an equally grim story. According to the European Union’s Copernicus Climate Change Service, Indonesia’s wildfires released an estimated 19.7 million metric tonnes of carbon dioxide between Sept. 1 and 7 alone, accounting for more than a third of all wildfire emissions worldwide during that period.

By July, roughly 202,000 hectares had already burned, according to data cited by Reuters. That damage expanded sharply through August, with total burned area estimated to have reached 600,000 ha, concentrated largely in Kalimantan, Sumatra, and South Papua. A potent El Niño has undoubtedly exacerbated conditions, ushering in parched, blistering weather that allows fires to ignite and spread with ease. Yet weather alone cannot shoulder the blame for a disaster that returns like clockwork.

Forestry Minister Raja Juli Antoni has openly acknowledged that many of these fires were set intentionally by individuals and corporations. Slashing and burning remains the cheapest, easiest method for clearing land in rural Indonesia, particularly where peatlands and native forests are systematically converted into oil palm and pulp plantations. This reality shifts the underlying debate: The issue is not simply whether Indonesia can respond to extreme weather, but whether it possesses the political will to stop illegal burning and hold perpetrators accountable.

Authorities have started taking legal steps. The Forestry Ministry recently handed down administrative sanctions to six Forest Utilization Business Permit holders after fires scorched 1,511.55 ha across their concessions in West, Central, and East Kalimantan. Five of these companies received government-enforced compliance orders. A sixth, PT MPK, had its operating permit suspended alongside an enforcement order after investigators discovered extensive, recurring burns across its land.

Yet enforcement remains the ultimate bottleneck: identifying the actual culprits behind the blazes and imposing penalties severe enough to serve as a genuine deterrent.

At home, the toll is devastating. More than 1.4 million students have been forced back into remote learning due to toxic, hazardous air. In Palembang, South Sumatra, the closures disrupted around 250,000 students across 1,030 schools. Meanwhile, health authorities recorded more than 50,000 cases of acute respiratory infections across seven provinces between July and August alone.

A recent assessment by the Center of Economic and Law Studies (CELIOS) estimated the combined economic and healthcare losses from the January–August fires at Rp 39.3 trillion (US$2.25 billion) to Rp 123.1 trillion. The upper end of that estimate represents nearly half, 49.1 percent, of Central Kalimantan’s projected 2026 regional GDP.

The fallout, however, does not stop there. Malaysia has felt the brunt of the drifting plume. On Sept. 4, authorities declared an emergency in Serian, Sarawak, as air quality deteriorated to hazardous levels, shuttering schools across the state. The haze has even reached the Philippines, pushing air quality readings in Manila into unhealthy territory. Faced with fouled air, Malaysia and Brunei have moved to escalate the matter through regional channels, reviving diplomatic frictions that have simmered for decades.

On paper, ASEAN possesses a tailored mechanism for precisely this challenge: the ASEAN Agreement on Transboundary Haze Pollution (AATHP), adopted in 2002 and ratified by Indonesia in 2014. The pact outlines clear protocols for monitoring, prevention, emergency response, and joint mitigation. Yet the treaty cannot supplant domestic law enforcement. Pinpointing who lit a blaze, proving whether a concession holder failed to safeguard its perimeter, and meting out punishment remain sovereign duties.

Herein lies the regional framework’s greatest limitation. ASEAN can streamline satellite data and coordinate disaster teams, but it cannot march into an Indonesian concession to enforce the law. A regional accord can mitigate the fallout from a haze crisis; it cannot dismantle the economic incentives that ignite the fires in the first place. Regional coordination is underway. In late August, the ASEAN Specialised Meteorological Centre triggered a Level 3 alert for the southern ASEAN region, signaling intense fire activity and an imminent risk of severe transboundary haze.

Indonesia has navigated major haze crises before, yet the skies continue to darken every dry season. For a public weary of choking on smoke and increasingly skeptical of official assurances, deploying more water-bombing helicopters is no longer enough. Meaningful progress requires naming names, prosecuting offenders, and ensuring corporate negligence carries real, biting costs. The most urgent test ultimately rests with Jakarta: proving it can stop the next fire before it turns into yet another national emergency and regional embarrassment.

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