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.
View moreMining
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
For nearly four months wildfires have ravaged Indonesia, exposing acute, systemic failures in government response and law enforcement. While the ongoing dry spell has exacerbated the crisis, suspected corporate land clearing by burning points to a deliberate, recurring practice that authorities have repeatedly failed to halt.
The scale of the destruction is alarming. At an emergency meeting with President Prabowo Subianto on Oct. 12, the National Disaster Mitigation Agency (BNPB) reported that 129,899.6 hectares of peatland had burned across six priority provinces: Central Kalimantan, South Kalimantan, West Kalimantan, South Sumatra, Jambi and Riau. Although officials claimed most blazes had been extinguished, active firefighting continued across another 639.2 ha. Furthermore, these figures omitted fires that had been burning unchecked across Papua for weeks.
Prabowo’s downplaying of the crisis, insisting that only a small area was still ablaze, contradicts the humanitarian toll on the ground. By Oct. 13, cases of respiratory infections linked to toxic haze had reached 283,270 across seven provinces.
Air quality measurements expose the depth of the public health emergency. On Oct. 15, the air quality index (AQI) in Pangkalan Bun, Central Kalimantan, spiked to a staggering 982, more than three times the minimum for the “hazardous” level, while Pontianak in West Kalimantan logged 280, near the upper range of the “very unhealthy” level. Even Jakarta, notorious for chronic pollution, recorded a far lower AQI of 176. Progress cannot be measured merely by hectares extinguished; it must be judged by the state's capacity to protect human lungs and prevent recurrent catastrophe.
The fallout has long breached national borders: Singapore recorded its highest PM2.5 readings of the year on Oct. 14, Timor-Leste shuttered classrooms for three days starting on Oct. 15, and Malaysia closed schools across several states as transboundary haze intensified. The crisis has evolved from an internal ecological disaster into a regional health and diplomatic liability.
Public patience has run out. Grassroots outrage has surged across social media, where campaigns like “Our Forests Are Still Burning” have amassed millions of shares. Yet the backlash targets not only environmental devastation but also presidential priorities. While millions choke on toxic smoke, President Prabowo has maintained routine appearances at soccer events and taken foreign trips. Whatever diplomatic or political justifications these engagements carry, the optical disconnect is glaring: a presidency conducting business as usual while citizens gasp for clean air.
The fury has migrated to the streets. On Oct. 13, student protesters picketed the South Sumatra Police headquarters in Palembang, demanding criminal accountability for corporate fire starters. The previous week on Oct. 5, they had rallied outside the South Sumatra Governor’s office demanding transparency in wildfire management expenditure, real enforcement against offending agribusinesses and institutional accountability.
El Nino alone cannot serve as an alibi. In South Sumatra's Ogan Komering Ilir regency, firefighters from the Forestry Ministry’s Manggala Agni brigade uncovered burned plots in Pedamaran district that had been leveled by heavy machinery and prepared for planting, while neighboring oil palm concessions remained untouched. The site bore all the hallmarks of intentional arson to facilitate cheap plantation expansion.
The state’s diplomatic posturing has also invited skepticism. After Japan deployed Self-Defense Forces helicopters to help fight blazes in Kalimantan throughout September, Indonesia abruptly terminated the mission on Sept. 29, saying it could handle the rest domestically. Neighbors Malaysia and Singapore have likewise offered assistance.
The national emergency apparatus is undeniably active: Tens of thousands of personnel are deployed alongside heavy-duty pumps and deep well rigs. However, self-reliance is admirable only when backed by results. When toxic haze crosses international boundaries, national pride must yield to regional responsibility.
Subsurface peat fires are notoriously obstinate, smoldering underground for weeks before flaring anew. But precisely because these conditions are well understood, prevention must take precedence. Indonesia has grappled with this disaster cycle for decades; nothing about this year’s crisis was unpredictable.
The fundamental flaw remains the chasm between reactive mobilization and structural prevention. Credible governance demands year-round surveillance, early intervention, firm prosecution of corporate culprits and total transparency in burned area data. When civil society groups document burned acreage far exceeding official reports, public trust erodes.
Prabowo’s rhetorical calls for prevention will mean nothing if enforcement lapses persist before the next dry season. The government must blacklist culpable firms, protect peatlands and prosecute offenders before seasonal haze hardens into an annual public health crisis. These wildfires are a test of whether Indonesia can enforce its own laws, protect its populace and honor its international commitments. Quelling the flames is not enough; the state must end the culture of impunity that ignites them.
