The Indonesian government has taken a concrete step in boosting critical mineral downstreaming by establishing a strategic partnership with India. This agreement is outlined in a memorandum of understanding (MoU) focused on the development of technology for separating and refining rare earth elements (rare earth).
This collaborative project will involve PT Perusahaan Mineral Nasional (Perminas), supported by the Non-Ferrous Materials Technology Development Centre (NFTDC) and integrated Indian mining company Midwest Ltd. This partnership represents a key pillar among the 16 bilateral agreement points discussed during a meeting between President Prabowo Subianto and Prime Minister Narendra Modi at Merdeka Palace on Tuesday (7/7/2026).
Head of the Mineral Industry Agency (BIM) and Minister of Higher Education, Science, and Technology, Brian Yuliarto, revealed that Indonesia is actively exploring India's technological capabilities in the mineral refining sector. According to him, India possesses expertise in processing rare earth metals as well as developing the magnet industry, which is the main focus of technology exchange between the two countries.
"We are currently exploring various technical opportunities, particularly in building the magnet industry and mineral refining facilities to provide optimal added value to the national economy," Brian stated at the Presidential Palace Complex.
As a state-owned enterprise under Danantara, Perminas is mandated to lead downstreaming efforts and critical mineral exploration in the country. Through this international synergy, the government hopes Indonesia can master future mineral technology supply chains essential for global renewable energy and high-tech industries.
