There's the word 'industry' in the name of a new institution whose head President Prabowo just inaugurated on Monday, August 25, 2025. The Mineral Industry Agency (BIM), as the new institution is called, is headed by Minister of Higher Education, Science and Technology Brian Yuliarto, based on Presidential Decree No. 77/P 2025.

However, BIM is not to be interpreted as a factory that will process minerals and mining goods, especially since its chairman is a scientist. It will act as a bridge connecting university research and the National Research and Innovation Agency (BRIN) with mining policy-making circles, in this case, the Ministry of Energy and Mineral Resources (ESDM), and industrial development.

This means that through BIM, the state is encouraging heavy investment in research and development (R&D) to utilize Indonesia's natural resources. Not only the popular minerals in the bowels of the earth, such as oil and coal as well as gas, but also lesser-known minerals, such as Rare Earth Elements (ETJ).

Minister of Energy and Mineral Resources Bahlil Lahadalia stated that BIM will be the sole manager of ETJ in Indonesia, separate from the Ministry of Energy and Mineral Resources. "In the future, our policy is upstream, in the raw materials. We do not allow rare earth metals to be managed by the public, but will be managed by the state. There will be its own governance, and just wait for the rules," Bahlil said, as quoted from Antara, Monday (25/08).

Bahlil emphasized that the roles of the Ministry of Energy and Mineral Resources and BIM are quite clear. The Ministry of Energy and Mineral Resources will regulate the availability of raw materials, while the processing flow to determine the final product will be handed over to BIM.

Can't be alone

Chairman of the Mining Expertise Board of the Indonesian Engineers Association (PII) Rizal Kasli said that one of the initial potentials discovered in Indonesian territory is monazite (monazite ) reserves, a reddish-brown rare earth phosphate mineral found in igneous, metamorphic and sedimentary rocks, such as river and beach sand. Monazite contains thorium, a radioactive substance that is the main material for nuclear power plants.

The existence of monazite as an ETJ has been ruled out because it is considered as tin mining waste in Bangka Belitung. Meanwhile, other ETJ minerals are still under investigation and are still hypothetical resources.

"No other mineral reserves have been found that can be developed, further to the processing and manufacturing industry," said Rizal when contacted by SUAR, Wednesday, August 27, 2025.

Referring to the mandate of the Mineral and Coal Law (Minerba), Rizal assessed that the development of ETJ potential cannot be carried out by the government alone. This is because, in addition to being hampered by budget constraints, ETJ exploration in the early stages has a very high risk.

This is because these early studies entail high costs, uncertainty of results, and potential negative environmental impacts. Such as damage to soil structure and water pollution, which require large technology and investment, as well as close monitoring to minimize such risks. 

To mitigate the risk, the government can share the task with state-owned companies or private parties that already have the technological capacity, and specialized geological competence to manage this development. "The government should just focus on its function as a regulator and develop policies that are conducive to the investment climate in this field," he said.

In addition to the development of potential that must involve many parties, the technology of processing and refining ETJ minerals in the country requires large investments and further development, so that dependence on the processing technology of this valuable material on other countries can be reduced.

"The government should provide full support for R&D programs both from universities (PT), research institutions, and private partners so as to produce technology that can be used in the development of this ETJ commodity, considering that there have been several pilot projects by BPPT and Puspiptek before being merged, which can actually be continued to the commercial stage," said Rizal.

Opportunities await

Executive Director of the Indonesia Mining Association (IMA) Hendra Sinadia understands the tendency for ETJ potential to be wasted. He reminded that the potential of rare earth minerals has actually existed for hundreds of years in the earth's crust.

"It's just that back then, the market for these products was not as big as it is now, and there was no technology to process them. At that time, many people did not know, so it was considered a by-product," Hendra told SUAR.

Apart from being a raw material for the production of high-tech materials, according to Hendra, ETJ has actually been used in various daily products, ranging from cellular phones, ceramics, optical devices, to airplanes. "The trend will continue to grow, especially with geopolitical dynamics, the LTJ supply chain is becoming increasingly important," he said.

This is possible because to this day, China, which has successfully spurred its high-tech industry, manages to secure 80% to 90% of the world's ETJ supply, which is earmarked for the manufacture of space satellites and defense instruments.

It is hoped that the regulation of this sector will open up opportunities to attract high-tech investment to process the LTJ, because the world does not want to depend on just one country.

Imagine, if China monopolizes the use of rare earth elements, many parties will be affected. "Well, the momentum of this high dependence is an opportunity for us because currently various countries are looking for alternative suppliers of ETJ," Hendra said.

Commercial steps after 2025

Although the exploration and exploitation of this rare earth element in Indonesia is not yet popular, in May 2025, PT Timah has started a thorium extraction project from monazite in collaboration with its parent company, Mind ID, in Tanjung Ular, West Bangka, Bangka Belitung Province. The Tanjung Ular processing facility, which has been established since 2010, is currently undergoing revitalization to prepare for commercial-scale ETJ production planned to start after 2025.

Confirmed regarding the operational plan of thorium and monazite processing, Mind ID has not yet responded to this news.

John Zadeh's analysis of Discovery Alert Australia considers PT Timah's move to be very strategic. This is because rare earth elements such as neodymium, praseodymium and dysprosium are needed to create magnets that are applied in various electronic devices, while the global supply chain capable of providing them is very limited.

The ETJ extraction challenge is at least twofold. First, hydrometallurgical methods to separate the valuable elements from the rest.

Second, the method of handling radioactive waste requires sophisticated protocols in accordance with the provisions of the International Atomic Energy Agency (IAEA), so that the processing and purification of ETJ must be precise and perfect.

Third, quality control standardization to meet the specifications of foreign market needs according to the manufacturing needs of high-tech products.

Zadeh added that ETJ extraction has a number of implications for Indonesia in the future. Namely, starting from reducing import dependence, opening up technology transfer opportunities, resource diversification, to independence of strategic mineral needs as a first step in the formation of a high-tech manufacturing ecosystem in Indonesia.

"With a vision to become a reliable supplier of rare earth elements for the needs of electric vehicle production and renewable energy generation, Indonesia's vision to supply 5% of global ETJ demand by 2030 indicates an ambitious goal, but also realistic to achieve," he said.