Prospecting METS opportunities in Indonesia

Indonesia is one of the world’s largest exporters of thermal coal. It is also a significant producer of copper, gold, nickel, tin and bauxite. It has the largest gold mine, second largest copper mine, and 2 of the 5 largest coal mines in the world, measured by annual production.

Indonesia is a profitable and growing market for a wide range of operators and mining equipment, technology and services (METS) providers. There is a strong alignment between Australian METS capability and the needs of the Indonesian mining sector.

Indonesia is progressively implementing policies designed to increase downstream processing of commodities including nickel, copper and bauxite. This is driving significant investment in the development of downstream processing assets. 

After successfully developing the nickel processing sector, Indonesia continues with its ambition of becoming an electric vehicle (EV) battery manufacturing hub. It is aspiring to become the largest battery manufacturing ecosystem outside of China.  

Critical to Indonesia’s success will be to improve environmental, social and governance (ESG) indicators across the entire sector. Without higher levels of ESG, Indonesia recognises it will not be able to attract investors. This will equally limit the country’s ability to supply the biggest EV markets globally, Europe and the US.

Opportunities for Australian METS providers

There are opportunities across the mining value chain for Australian METS companies.

Supporting the development of downstream processing assets 

Export bans on unprocessed commodities has triggered a wave of smelter development. The developments are predominantly in nickel, with additional smelters in bauxite, copper, iron, lead and zinc. This drive to increase downstream processing is driving opportunities in areas such as technology, design and construction.

Safety-related training, systems and technology

Safety performance in Indonesian mining is variable but there is increasing focus on safety regulations. The range of operators with a strong commitment to safety is increasing. We expect this to continue and the market for safety improvement solutions, training and related services to grow.  

Environmental management and waste solutions

A range of environmental and energy efficiency issues is driving demand for technologies and solutions to address:

• waste management
• air pollution
• water conservation
• deforestation and habitat loss
• energy efficiency
• biodiversity loss. 

Optimising operations

The push towards operational improvement is a key driver of new capital expenditure and adoption of new services and technologies. This is an active source of opportunity in Indonesia. Significant established operations are committed to improvement projects alongside the development of new operations. 

Skilling workforces

The increase in sophistication and standards across Indonesian mining is driving a corresponding need for more highly skilled workers. 

The Indonesian mining sector recognises the depth and relevance of Australia’s university and vocational training capabilities and its links to Australia’s resources industry. This has created scope for new partnerships between Australian and Indonesian institutions.

Improving energy efficiency

The single biggest challenge facing the Indonesian resources sector is how to overcome the cheap supply of coal and move forward to sustainable energy. It is also a factor that will inhibit Indonesia from attracting diversified foreign investment.   

The sector is seeking solutions that can improve operational energy efficiency and incorporate renewables into existing operations and other areas.

Potential challenges to watch out for

Australian METS companies should be aware of the following potential challenges.

The need for a local presence

Indonesia requires foreign firms to maintain a local presence through local representatives, distributorships or agencies. Local partners with established customer vendor numbers are critical in being able to supply to the Indonesian mining sector. Foreign entities will not be issued vendor numbers by state-owned enterprises. 

Foreign divestment regulations

Through its Foreign Divestment regulations, the Indonesian Government is pursuing an agenda to increase state-owned assets by purchasing shares in key foreign-owned mines. State buyup and ownership has begun to reduce in the long term following the 2021 changes to foreign divestment. This has given foreign investors additional time to divest shares in their local mining operations. Divestment commences in the 20th year of production rather than the fifth.

Join Mining Indonesia 2025

Mining Indonesia is Asia’s largest international mining equipment exhibition. It provides a platform for Indonesia’s mining industry to do business. Industry leaders and key players in the global mining industry showcase the latest products and services in one venue, the Jakarta International Expo.

Mining Indonesia 2024 (17–20 September 2024) was attended by key decision-makers, major equipment importers, distributors and agents. The event attracted 50,646 trade attendees, 2,062 exhibiting companies and 43 countries exhibiting.

This event attracted mining-adjacent Australian companies to exhibit, with around 25 Australian companies either attending or exhibiting. Austrade hosted an Australia networking reception with the New South Wales, Western Australian and Queensland Governments. The networking event attracted more than 100 key customers and contacts. It was a valuable opportunity for Australian delegates to make connections and promote their business.  

Austrade plans to host the Australia Pavilion at Mining Indonesia on 17–20 September 2025. There will be business-matching support services, in partnership with state and territory governments. Australian delegates in previous years have increased their profile, won new contracts and identified in-market partners.  

To discuss Mining Indonesia 2025 or explore potential opportunities for your business in Indonesia, please reach out to: 

• Brenda Read – Global Engagement Manager, Austrade
• Armelita Adhitya – Senior Business Development Manager, Austrade Indonesia.