The Indonesian Ministry of Energy and Mineral Resources (ESDM) and the Northern Territory (NT) of Australia have formalized a collaboration aimed at strengthening the supply chain of critical and strategic minerals.
The partnership is expected to enhance Indonesia’s role in the global mineral supply chain while supporting NT Australia’s efforts to diversify its sources of critical minerals. The two parties signed a Memorandum of Understanding (MoU) on November 12, 2024, to advance cooperation in this sector.
Indonesian Deputy Minister of Foreign Affairs, Arif Havas Oegroseno, highlighted the importance of diversifying partnerships beyond national governments to include states with strategic capabilities in the critical mineral industry.
“The ESDM Memorandum of Understanding with NT Australia can serve as a model for the Indonesian government to establish similar cooperation with other states that possess strategic potential in Australia,” Oegroseno stated on February 21, 2025.
Dadan Kusdiana, Secretary General of the Ministry of Energy and Mineral Resources, noted that the agreement aligns with Indonesia’s recently enacted Mining Law (UU Minerba). He emphasized that the collaboration aims to support economic growth and job creation through research, innovation, and exploration.
Focus on Sustainability and Decarbonization
Kusdiana also underscored the role of sustainability in the mining industry, stating that Indonesia is committed to reducing environmental impact by adopting renewable energy, electrifying mining operations, and integrating advanced technology.
“Indonesia implements practices to prevent biodiversity loss and protect natural ecosystems, ensuring sustainable and responsible development,” he added.
NT Australia’s Minister for Trade, Business, and Asian Relations, Robyn Cahill, welcomed the agreement, expressing optimism about its implementation at both industry and government levels.
“Our resource sector continues to expand with new discoveries and opportunities, particularly in critical minerals. Many organizations and businesses are showing interest in investing in our region due to its vast potential,” Cahill said.
Next Steps and Implementation
As part of the implementation plan, both parties will organize the Indonesia-NT Australia Mineral Roadshow in April 2025, where Indonesian mining companies will visit NT Australia. A reciprocal visit is scheduled for May 2025, with delegations traveling to mining regions in Sulawesi (Sorowako and Morowali) or Maluku (Teluk Weda).
The collaboration encompasses joint studies, development of mineral processing and refining technologies, and training programs aimed at enhancing human resource capacity in the sector.
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