Indonesia Asks Australia to Invest in the Mineral Processing Sector

Wednesday, 22 July 2026

Indonesia is strengthening its partnership with Australia by inviting more investment into one of its most important industries: mineral processing. Rather than simply exporting raw materials, Indonesia wants to create more value by processing minerals domestically before they reach global markets.

During a bilateral meeting with Australian Prime Minister Anthony Albanese, Indonesian President Prabowo Subianto encouraged Australia to participate in the country’s downstream critical mineral industry. The invitation covers processing facilities for strategic resources such as nickel, copper, bauxite, and gold.

This proposal reflects Indonesia’s long-term economic strategy. The country holds some of the world’s largest reserves of nickel, a mineral that plays a key role in electric vehicle batteries, renewable energy storage systems, and stainless steel production. Instead of exporting raw ore, Indonesia aims to build a stronger manufacturing ecosystem that generates higher-value products and creates more jobs.

Australia is considered a natural partner for this effort. It has extensive mining expertise, advanced technology, experienced engineering companies, and strong investment capabilities. By combining Australia’s technical strengths with Indonesia’s abundant natural resources, both countries could benefit from a more integrated critical minerals supply chain.

Interestingly, the partnership is designed to work both ways. President Prabowo also encouraged Indonesian companies to invest in Australia’s critical mineral mining sector, creating opportunities for collaboration instead of one-sided investment.

Another important part of the discussion involved Danantara, Indonesia’s sovereign wealth fund. The government signaled that Danantara is ready to cooperate with Australian partners through co-investment opportunities and strategic joint ventures. This approach could help accelerate large-scale projects while sharing expertise and financial resources.

The growing demand for electric vehicles and renewable energy has made critical minerals increasingly valuable worldwide. Countries are now competing to secure stable and sustainable supply chains for battery materials. Indonesia hopes to become not just a supplier of raw minerals, but a global hub for mineral processing and advanced manufacturing.

For Australian investors, Indonesia offers attractive opportunities thanks to its large resource base, expanding industrial infrastructure, and government commitment to downstream development. Meanwhile, Indonesia can benefit from Australia’s mining knowledge, technology, and international business experience.

Beyond economics, stronger cooperation in mineral processing could deepen the overall relationship between the two neighboring countries. It complements existing collaboration in agriculture, education, infrastructure, and energy while supporting regional economic growth.

As global demand for critical minerals continues to rise, partnerships like this may become increasingly important. If the proposed investments move forward, Indonesia and Australia could play a significant role in building a more resilient and sustainable supply chain for the industries of the future.