State-Owned Enterprises Positioned for Rare Earth Mining Opportunities

New Regulatory Framework

Recent government regulations through Ministerial Regulation No. 18/2025 have opened opportunities for state-owned enterprises (BUMN) to participate in rare earth element mining. This regulation is part of the implementation of Government Regulation No. 39/2025, which amends previous mining regulations. The new framework creates a potential pathway for BUMN to manage rare earth resources, aligning with the government's strategy to optimize these valuable minerals.

PT Timah's Strategic Readiness

PT Timah Tbk (TINS), a state-owned mining company, has expressed readiness to capitalize on this opportunity. According to Suhendra Yusuf Ratuprawiranegara, Director of Business Development at Timah, the company is well-prepared in terms of resources. "PT Timah is in a ready condition from the sources perspective for LTJ. We already have a Pilot Plant facility for research or development of LTJ," he explained. This preparation positions Timah favorably to meet the government's requirements and potentially secure rare earth mining contracts.

Regulatory Compliance and Future Plans

As a mining company operating under government regulations, PT Timah is committed to maintaining compliance with all regulatory requirements. The company emphasizes its dedication to fulfilling government expectations while continuing to develop its rare earth capabilities. With its existing infrastructure and readiness, Timah is strategically positioned to play a significant role in Indonesia's rare earth mining sector. The company's preparedness includes both resource availability and technological capabilities through its pilot plant facility.

Industry Implications

The new regulation and Timah's readiness signal a positive development for Indonesia's mining sector, particularly in the rare earth elements market. As the government continues to implement these new regulations, state-owned enterprises like Timah are likely to play a crucial role in shaping the country's rare earth mining industry. The development is expected to contribute to the growth of Indonesia's mining sector and potentially increase the country's presence in the global rare earth market.