February 23, 2026 | 11:52 am
TEMPO.CO, Jakarta - The Coordinating Ministry for the Economy promises the Indonesian government will not relax the ban on exporting raw commodities with the existence of a reciprocal trade agreement.
"Indonesia will not open the export of critical mineral raw materials to the United States," said the Spokesperson for the Coordinating Ministry for the Economy, Haryo Limanseto, in a written statement on Sunday, February 22, 2026.
Critical mineral sectors emerge in the Agreement on Reciprocal Trade (ART) document, signed by President Prabowo Subianto and U.S. President Donald Trump.
The U.S. demands the removal of export limitations on these commodities. "To strengthen supply chain connectivity between the Parties, Indonesia shall remove restrictions on exports to the United States of industrial commodities, including critical minerals," reads one of the points in a document uploaded by the U.S. Trade Representative's Office (USTR) on February 19, 2026.
In response to this clause, Haryo stated that the reciprocal trade agreement encourages U.S. companies to collaborate with Indonesian companies in implementing downstream policies and developing processing industries for critical minerals and rare earth metals.
Haryo explained that the exported products are commodities that have been processed after U.S. companies have conducted mining and processing in Indonesia. He stated that this mechanism is similar to current business practices and complies with existing regulations.
The direct request from the U.S. to remove restrictions on exporting raw minerals raises questions about the longstanding policy of banning the export of raw minerals, such as nickel.
Executive Director of the Center of Reform on Economics Indonesia (CORE), Mohammad Faisal, sees this agreement as contradictory to the downstreaming program that the Indonesian government has been promoting.
Faisal believes that if the government agrees to this, it would be a step backward. "However, we can engage in downstreaming for nickel because of the ban on the export of its ore," said Faisal to Tempo on February 20, 2026.
Additionally, Faisal believes this policy could create perceptions of differential treatment. This step could also set a bad precedent for other investors and disrupt the investment climate.
He sees the request for cooperation in managing downstream production as an effort by the US to compete with China's dominance. China has long been considered to dominate the supply of critical minerals such as nickel, copper, and other rare earth elements. This step is crucial because critical minerals are essential raw materials for high-value manufacturing processes, such as those used in semiconductor or technological product production.
Ilona Estherina contributed to this article
Read: US Demands Indonesia to Lift Critical Mineral Export Restrictions
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