FORMER Minister of Energy and Mineral Resources (ESDM) under President Jokowi, Arcandra Tahar, said that currently China is the master of a number of critical and strategic minerals, starting from copper, cobalt, nickel, lithium, manganese and others.
By controlling critical mineral materials, the country is able to build an electric vehicle ecosystem from upstream to downstream. Not only that, China is also able to massively produce solar panels and wind turbine magnets. This, said Arcandra, is different from other developed countries which are still competing to control oil and gas supplies (oil and gas), as well as coal.
“China no longer has oil and gas reserves, but controls critical minerals. He collects everything, from the mining side there is nickel, cobalt, lithium. Then, there are battery cells consisting of anodes, cathodes and even electric cars like BYD,” he said in a discussion in Jakarta, Wednesday (30/10).
What’s interesting, continued Arcandra, is that even though China is the largest country in nickel consumption, most of their primary nickel processed products come from outside China, one of which is in Indonesia.
The country led by President Xi Jinping is said to have deliberately invested heavily in Indonesia to control nickel in the country and send the mineral to the Bamboo Curtain country. From existing nickel smelters, nickel pig iron (NPI) and ferrous nickel (FeNi) can be produced as raw materials for electric vehicle batteries.
“China’s strategy is that they only have a little nickel, but the mining is outside. They invest in Indonesia, for example, to secure nickel supplies and use it as their savings,” explained Arcandra.
He also emphasized that the Indonesian government could follow China’s example in terms of strategies for controlling critical minerals. The government, he stressed, should not only focus on creating added value from nickel downstream derivative products or other mineral commodities. Indonesia, which is said to have a wealth of natural resources, must have the ambition to become the master of critical and strategic mineral commodities.
“Our perspective is only on added value, not on controlling critical minerals. China is thinking long and hard about how they can control existing mineral resources and become bullets for the future in terms of energy transition,” said Arcandra.
Previously, the Ministry of Energy and Mineral Resources (ESDM) through the Center for Mineral, Coal and Geothermal Resources (PSDMBP) was exploring cooperation with PT. Eramet Indonesia Mining, to discuss follow-up cooperation related to the study and exploration of critical minerals in Indonesia. The meeting was held in Jakarta, last Tuesday (15/10).
Head of PSDMBP Agung Pribadi said that PSDMBP is currently trying to collaborate with a number of foreign companies, which is focused on in-depth studies regarding the potential of critical minerals.
“Critical minerals, such as nickel, cobalt and lithium, are commodities that are really needed in the development of future technology, especially for electric vehicle batteries,” he said in an official statement.
With a comprehensive study, he continued, it is hoped that new critical mineral reserves will be found that are larger and have high economic value. In more detail, Agung said that the cooperation that will be established between PSDMBP and Eramet covers several aspects, including the study and investigation of critical mineral prospect areas that have not been developed in Indonesia, ore characterization and metallurgical processes related to nickel, and lithium exploration from geothermal brine. This collaboration also opens up opportunities for knowledge exchange related to lithium exploration, mineral inventory and joint scientific publications.
Agung continued that his party had plans to investigate lithium in Grobogan Regency, Central Java. This investigation is a follow-up to the lithium brine study initiated in 2023 in the Bleduk Kuwu area and its surroundings. The activity will involve geophysical and geochemical methods, with PSDMBP and Eramet contributing the use of different equipment and techniques. (Z-9)
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**Interview with Arcandra Tahar: Former Minister of Energy and Mineral Resources**
**Interviewer:** Thank you for joining us today, Mr. Tahar. You recently highlighted China’s dominance in critical minerals. Could you elaborate on how this impacts Indonesia’s position in the global market?
**Arcandra Tahar:** Thank you for having me. China has effectively positioned itself as a leader in critical minerals like nickel, cobalt, and lithium. While they may not have significant oil and gas reserves, they’ve invested in acquiring these minerals globally, particularly here in Indonesia. This gives them a strategic advantage in building electric vehicle ecosystems and renewable energy technologies.
**Interviewer:** You mentioned China’s investments in Indonesia to secure nickel supplies. How does this affect Indonesia’s economy and its own mineral strategies?
**Arcandra Tahar:** China’s investments provide significant economic opportunities for Indonesia, particularly with nickel smelting operations that produce materials essential for electric vehicle batteries. However, we need to shift our focus beyond just adding value to these minerals. The Indonesian government should aspire to control our critical mineral resources effectively, making us not just a supplier but a leader in the commodities market.
**Interviewer:** In your opinion, what steps should the Indonesian government take to enhance its control over critical minerals?
**Arcandra Tahar:** The government needs to develop a long-term strategy that looks at securing mineral resources rather than just profiting from them. This involves encouraging investment in local processing facilities and technology, fostering partnerships, and developing policies that attract more players to the mineral sector. We must think ahead and position Indonesia as a critical player in the global energy transition.
**Interviewer:** Thank you, Mr. Tahar. It’s clear that while there are challenges, there are also significant opportunities for Indonesia in the critical minerals landscape.
**Arcandra Tahar:** Absolutely. By leveraging our natural resources wisely, we can ensure a sustainable future and strengthen our economic independence. Thank you for this conversation.