The Minister of Energy and Mineral Resources recently signed Ministerial Regulation No. 18 of 2025, implementing Government Regulation No. 39 of 2025 (amending Government Regulation No. 96 of 2021), governing the management of rare earth elements (LTJ) and other metal minerals. The regulation stipulates that the Minister, based on the geological agency's study and survey results on rare earth metal potential, determines areas that can be designated as rare earth metal mining concession areas, and may appoint state-owned enterprises to develop and utilize rare earth metals, prioritizing them for domestic priority industry development.
State-owned enterprises must comply with all central government business licensing requirements. When appointing a state-owned enterprise, the relevant documents must include a map of the rare earth metal mining concession area, an instruction to pay data information compensation within 7 working days, and an instruction to deposit a good faith guarantee for exploration activities within 7 working days. The guarantee amount is based on the area of the mining concession. Previously, rare earth metals in Indonesia generally existed as by-products of processing and refining facilities, and utilization required prior exploration.
President Prabowo previously signed Government Regulation No. 39 of 2025, adding provisions that the development and utilization of rare earth metals can come from specific mining concession areas or by-products of metal mineral processing and refining products, prioritizing them for domestic priority industries, with detailed rules to be stipulated by ministerial regulation. Government Regulation No. 96 of 2021 previously had no relevant provisions on rare earth metals.
The Minister of Energy and Mineral Resources recently signed Ministerial Regulation No. 18 of 2025, implementing Government Regulation No. 39 of 2025 (amending Government Regulation No. 96 of 2021), governing the management of rare earth elements (LTJ) and other metal minerals. The regulation stipulates that the Minister, based on the geological agency's study and survey results on rare earth metal potential, determines areas that can be designated as rare earth metal mining concession areas, and may appoint state-owned enterprises to develop and utilize rare earth metals, prioritizing them for domestic priority industry development.
State-owned enterprises must comply with all central government business licensing requirements. When appointing a state-owned enterprise, the relevant documents must include a map of the rare earth metal mining concession area, an instruction to pay data information compensation within 7 working days, and an instruction to deposit a good faith guarantee for exploration activities within 7 working days. The guarantee amount is based on the area of the mining concession. Previously, rare earth metals in Indonesia generally existed as by-products of processing and refining facilities, and utilization required prior exploration.
President Prabowo previously signed Government Regulation No. 39 of 2025, adding provisions that the development and utilization of rare earth metals can come from specific mining concession areas or by-products of metal mineral processing and refining products, prioritizing them for domestic priority industries, with detailed rules to be stipulated by ministerial regulation. Government Regulation No. 96 of 2021 previously had no relevant provisions on rare earth metals.