Fajarasia.id – The Indonesian government has officially introduced a new regulatory framework for the management of rare earth elements (REE), a strategic mining commodity. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia signed Ministerial Regulation No. 18 of 2025 on November 14, 2025, as a follow-up to Government Regulation No. 39 of 2025, previously enacted by President Prabowo Subianto.
The regulation provides detailed guidelines on granting Mining Business Permit Areas (WIUP) for radioactive minerals and rare earth elements, including mechanisms for appointing state-owned enterprises (SOEs) to manage and utilize these resources.
Article 4 of the new regulation authorizes the ESDM Minister to conduct inventories of potential rare earth areas, designate WIUPs, and assign SOEs as operators. Utilization of rare earth elements will be prioritized for domestic strategic industries.
SOEs appointed must comply with all central government licensing requirements, pay compensation for data usage, and place exploration commitment guarantees in the form of time deposits. The guarantee is set at Rp50 million for areas up to 40 hectares, and Rp1.5 million per hectare for larger concessions.
Deputy Minister of ESDM Yuliot Tanjung explained that rare earth elements in Indonesia are generally found as by-products in processing and refining facilities. However, utilization from mining areas requires thorough exploration to determine location, mineral type, and estimated reserves.
“Rare earth in Indonesia is mostly a by-product. For mining areas, exploration must first be conducted,” Yuliot noted.
With this new regulation, Indonesia aims to boost its bargaining position in the global market. Rare earth elements are considered a “hidden treasure” vital for renewable energy, digital technology, and defense industries.
The move underscores the government’s commitment to optimizing natural resources to support domestic industrial independence and enhance Indonesia’s competitiveness on the international stage.
