Indonesia urged to expand mineral processing into finished goods
A senior energy ministry official pointed to gaps in bauxite and tin processing, saying stronger industry could help absorb Indonesia’s working-age population.
Indonesia should take mineral processing further towards finished products to strengthen industry and make better use of its workforce, according to Tri Winarno, director-general of minerals and coal at the Ministry of Energy and Mineral Resources.
Speaking at a CNBC Indonesia discussion, in remarks reported on 29 October 2026, Tri said downstream processing should help revive industrialisation. He argued that developed countries had benefited from both industrial development and favourable demographics.
Tri said Indonesia’s demographic dividend runs from 2021 to 2040, with people of working age projected to account for nearly 70 per cent of the population in 2030. Without a strong industrial base to provide jobs, he warned, that workforce could become an economic burden rather than an advantage.
While nickel processing had advanced, Tri acknowledged that bauxite and tin still faced challenges. He cited gaps between bauxite, alumina, aluminium and finished products, and said 95 per cent of the tin industry’s output was exported, leaving only 5 per cent for domestic consumption.
Tri said mines have limited lifespans and reserves, making it important to maximise their benefits for Indonesians. Extending production into finished goods and further derivatives could generate wider economic benefits, he said.
Downstream processing is one of President Prabowo Subianto’s flagship programmes, covering mining, agriculture, plantations, fisheries and marine sectors.
