Indonesian Exports of Alumina and Other Products Stalled Due to Rare Earth Content
Release time:
2026-09-09
According to *Mining Weekly* (citing Reuters), the Indonesian Presidential Office has called for enhanced cooperation among government agencies, law enforcement, and industry stakeholders to address regulatory loopholes; industry reports indicate that exports of alumina and nickel products are facing delays due to their rare earth content.
Although Indonesia is a major exporter, it rarely produces goods with associated rare earth elements; consequently, no regulations have yet been established to govern the permissible levels of rare earth content in other exported products.
Officials stated on Monday that exporters are facing shipment delays due to the lack of clear regulations in this area.
"I have received reports from several companies regarding disruptions to mineral exports," said Dudung Abdurachman, Chief of the Presidential Staff Office, after chairing a coordination meeting on the issue with government agencies, law enforcement officials, and industry representatives on Monday.
Two sources in the aluminum industry stated that exports of alumina—a key raw material for aluminum smelting—have already been affected.
"The government claims our alumina contains rare earth elements," one source said, noting that this has directly impacted exports.
Two sources in the nickel industry reported delays affecting shipments of ferronickel (a key raw material for stainless steel) and mixed hydroxide precipitate (required for EV batteries). They did not disclose the volume of affected materials.
All four sources requested anonymity, as they were not authorized to speak to the media.
Dudung stated that the export blockage stems from regulatory loopholes regarding permissible rare earth content, noting that the regulations fail to clearly specify which types of exports are subject to these restrictions.
He emphasized that relevant authorities—including the military—should not obstruct exports in the absence of specific regulations governing rare earth by-products.
Attendees at the meeting included representatives from key economic ministries, the National Research and Innovation Agency (BRIN), the police, the Attorney General's Office, the sovereign wealth fund Danantara, state-owned mining companies, and industry associations.
Indonesia mandates that rare earth elements be prioritized for domestic use, and President Prabowo Subianto has established a dedicated agency to oversee these applications.
Data from trade monitoring agencies show that Malaysia, India, and Qatar were the primary destinations for Indonesian alumina exports during the first five months of this year.
