Anticipating the Future of Indonesia’s Rare Earth Element Mining

Rare earth elements (“REE”) are critical inputs for advanced technologies, including electric vehicles, renewable energy systems, and defense applications. Recognizing their strategic and economic significance, Indonesia has aligned its REE policy with its broader objective of maximizing domestic value addition in the mineral sector. Further, under Law Number 4 of 2009 on Mineral and Coal Mining, as amended by Law Number 3 of 2020, the Government holds authority to regulate and, where necessary, restrict the export of unprocessed minerals to promote downstream industry. Following precedents set in nickel and bauxite, the Indonesian Government has been considering measures to limit the export of raw REE in favor of developing local refining capacity and technological capability. Find out more our insights about this topic in our Legal Brief publication.

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