The natural resources include nickel, tin, bauxite, and copper, as well as a new renewable energy potential of 437.4 GW.
 Indonesia aims to become a high-income country by 2036 and make about 70% of its population in the middle income group by 2045.
Mineral governance policy focuses on improving domestic value creation, mineral reserve resilience, and contribution to government income and investment. So far 171 smelters have been built for various raw materials.
Other downstream fields are mineral and coal raw materials, which are the most important means to achieve the Sustainable Development Goals and combat global warming.
Other strategic industries also continue to be encouraged to collaborate with the world's best players
The industries include batteries, electric vehicles (EV), PLTS, and medical devices. The positive impact of downstream foreign investment (PMA) in manufacturing reached an all-time high in 2022 with an investment value of $45.6 billion.
In this article, we will discuss the contribution of the mining sector to the Indonesian economy, as well as its impact on the growth and development of this country.
1. Source of State Income
Mining is one of the main sources of income for the Indonesian government. State revenue from this sector comes from royalties, taxes, and dividends from mining companies. This revenue is used to support infrastructure development, public services, and social programs across the country.
2. Job Creation
The mining sector is also creating significant employment across the country. Both in the mining operation itself and in the supply chain associated with it, the sector provides jobs to thousands of people. This helps reduce the unemployment rate and improve the welfare of the community.
3. Contribution to Exports
Many mining commodities, such as coal, oil, and metals, are Indonesia's main export goods. Mining sector exports provide foreign exchange that is needed to offset the trade balance deficit and support the rupiah exchange rate. This also strengthens Indonesia's position in international trade.
4. Infrastructure Growth
The development of the mining sector often requires large investments in infrastructure, including roads, ports, and other transportation facilities. This not only supports the mine's own operations, but also improves inter-regional connectivity, which has a positive impact on overall economic growth.
5. Support for Other Industries
The mining sector also supports various other industries. For example, the metal and chemical industry uses raw materials from mining to produce various products. Thus, this sector plays an important role in advancing the manufacturing and industrial sectors in Indonesia.
6. Research and Development
Mining companies often invest in research and development (R&D) to improve the efficiency and sustainability of their operations. This spurs innovation in mining technology and engineering, which can also provide benefits for other sectors.
Although the mining sector provides many benefits for the Indonesian economy, it is important to remember that it also has an environmental and social impact that needs to be managed wisely. Strict regulation and sustainable mining practices are key to ensuring that the sector's positive contribution to the economy is not detrimental to the environment and society. With the right management, the mining sector will continue to be an important pillar of Indonesia's economy.
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