The Minister Of Energy And Mineral Resources Encourages Green Downstreaming To Gain Acceptance In The International Market

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is advocating for green downstream processing to produce goods that can be well-received in international markets.

"In the future, we will promote downstream processing effectively, truly green downstream processing that can be accepted abroad," stated Bahlil during a press conference at the Presidential Office, located in the Presidential Palace complex in Jakarta on Tuesday.

This statement is in response to the recommendation made by the Executive Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira, to the government to impose a moratorium (temporarily suspend) on permits for new smelters and nickel mines.

This recommendation is based on the current oversupply condition of nickel in the global market.

Bahlil acknowledged the suggestion but indicated that it may not necessarily be implemented, as the government intends to pursue nickel downstream processing with an environmentally friendly approach.

"Suggestions like that are welcome, but ultimately, it will be the government that decides," Bahlil remarked.

The Ministry of Energy and Mineral Resources (ESDM) anticipates a decline in global nickel prices due to the weakening of the global industry, particularly in China.

According to data from the Ministry of Finance, during January to February 2025, several key commodities experienced a decline in prices, including coal (-11.8 percent), Brent oil (-5.2 percent), and nickel (-5.9 percent).

The Ministry of Energy and Mineral Resources (ESDM) has also prepared various strategies to maintain the stability of mineral and coal prices.

These strategies include production planning in accordance with national needs and export plans; conducting feasibility studies (FS) and Environmental Impact Assessments (AMDAL) as integral parts of the Work Plan and Budget (RKAB) process.

Additionally, the government will evaluate the production approvals granted in the RKAB; establish Reference Prices for Coal and Minerals, as well as Benchmark Prices for Coal and Minerals, which will serve as the minimum selling price (Minister of ESDM Regulation No. 72 of 2025 regarding Guidelines for Setting Benchmark Prices for the Sale of Metal Mineral and Coal Commodities).

Furthermore, the government is also preparing guidance and supervision for mining activities to ensure compliance with good mining practices.

Tag: Bahlil Lahadalia CELIOS ESDM