Indonesia Issues Updated Regulations on Rare Earth Metals

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The Minister of Energy and Mineral Resources recently signed Ministerial Regulation No. 18 of 2025 as an implementing regulation to Government Regulation No. 39 of 2025 (amending Government Regulation No. 96 of 2021) regulating therare earth element (chemistry)(LTJ) and other metallic minerals management.The regulations provide that the Minister, on the basis of the geological agency's assessment of theStudies and findings on the potential of rare earth metals, identifying areas that can be used as mining claim areas for rare earth metallic minerals and can beDesignation of State enterprises responsible for the development and utilization of rare earth metalsandPrioritize the development of priority domestic industriesThe

The SOE is required to meet all commercial licensing requirements of the central government, and when determining the SOE, the relevant documents are to include a map of the mining claim area for rare earth metal minerals, an instruction to pay compensation for data information within seven working days, and an instruction to deposit a good faith bond for exploration activities within seven working days, with the amount of the bond being based on the size of the mining claim area. Previously, rare earth metals in Indonesia were generally used as processing and purification facilities forassociated mineexists, and its utilization requires prior exploration.

President Prabowo earlier signed Government Regulation No. 39 of 2025, which adds a new provision that the development and utilization of rare earth metals may be derived from specific mining claims or from associated mines for the processing of purified products of metallic minerals, with preference given to priority industries in the country, as stipulated in the Minister's Regulation. Previously, Government Regulation No. 96 of 2021 did not contain provisions on rare earth metals.

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