US to Collaborate in Indonesia’s Rare Earth Development from Upstream to Downstream
20 Feb 2026, 01:27 AM
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The governments of Indonesia and the United States (US) will collaborate on the management of critical minerals, including rare earth elements (REE), spanning from upstream to downstream sectors.This was outlined as one of the points in the reciprocal tariff agreement between Indonesia and the US, recently signed by the two heads of state: Indonesian President Prabowo Subianto and US President Donald Trump.In a document released by the White House on Thursday (Feb 19, 2026) local time, it was explained that Indonesia will remove export restrictions on industrial commodities to the US, including critical minerals.Furthermore, Indonesia and the US will accelerate cooperation in the development, processing, and downstream production of critical minerals based on commercial considerations.“To strengthen supply chain connectivity between the two parties, Indonesia will remove export restrictions on industrial commodities to the United States, including critical minerals,” as stated in the US-RI tariff agreement document on Friday (Feb 20, 2026).Supply ChainIt was explained that Indonesia will cooperate in the efficient development of the rare earth and critical minerals sector alongside US companies to ensure a secure and diverse supply chain.Indonesia will also provide greater certainty for companies involved in critical mineral extraction, as well as create business certainty to increase production capacity and operational growth.“Indonesia and the United States are committed to continuing cooperation and engagement in the critical minerals supply chain,” the White House wrote.In a press conference following the signing of the agreement, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the cooperation pertains to essential minerals or industrial metals.He claimed that the critical mineral cooperation being carried out will extend to secondary processing stages.Regarding this matter, Airlangga emphasized that Indonesia is open to cooperation in investment and technology for the development of critical minerals and REE.“Critical minerals are related to industrial minerals, meaning there is a secondary process, and Indonesia is open to investment and technology cooperation for both critical minerals and rare earth elements,” Airlangga said in an online press conference on Friday (Feb 20, 2026).On the sidelines of the Indonesian government delegation's visit to Washington D.C. the previous day, Prabowo invited US investors to invest in Indonesia’s vital mineral industry sector.This was expressed during the US-ASEAN Business Council (USABC), the U.S. Chamber of Commerce (USCC), and the United States-Indonesia Society (USINDO) in Washington D.C. on Wednesday (Feb 18, 2026) local time.In his speech, Prabowo emphasized that Indonesia is open to global investment and ready to be a strategic partner for US companies.According to him, Indonesia possesses critical mineral reserves highly needed for the development of new technologies, including rare earth metals and nickel for electric vehicle (EV) batteries."Indonesia is open to investment. We have critical minerals vital for new technologies, including large rare earth reserves. We want US companies to make Indonesia not just a market, but a strategic production base," Prabowo said on Thursday (Feb 19, 2026).Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) asserted that Indonesia will not export raw mineral ores or critical mineral ores to the US, provided that the regulations prohibiting it remain in effect.In this case, the regulation is Law No. 3/2020 concerning Mineral and Coal Mining (UU Minerba), which regulates the ban on raw commodity exports and mandates domestic processing to increase added value.The Director General of Minerals and Coal at the Ministry of ESDM, Tri Winarno, stated that the law confirmed raw materials could no longer be exported from Indonesia since 2023, or three years after the regulation was enacted.Thus, if a policy requiring the export of raw materials from the country arises in the future, the law would need to be revised. However, Tri emphasized that the government has no plans to revise that rule.“In our law, it is explained—Law No. 3/2020—that raw material exports stop three years after enactment. It was enacted in 2020, which means by 2023 it was finished,” Tri told reporters at the Ministry of ESDM Office, Thursday (July 24, 2025).Separately, the Secretary General of ESDM for 2023–2025, Dadan Kusdiana, also ensured there would be no changes to critical mineral export regulations to the US despite the tariff agreement.He said the agreement with the US does not contain rules allowing the export of unprocessed critical minerals or ore; instead, they must be processed first through downstreaming.“If the sentence is read in full, it is for processed minerals, all industrial commodities. So, it is not raw ore export. This is in line with the government's downstreaming program,” Dadan said when confirmed by Bloomberg Technoz, Wednesday (July 23, 2025).
