RI And China Sign Two Strategic MoUs For Mineral Sector

JAKARTA - Indonesia and China signed two strategic memorandums of understanding (MoU) in the mineral sector during President Prabowo Subianto's state visit to the country on 8-11 November 2024.

The signing was carried out by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia and Minister of Trade (MOFCOM) Wang Wentao regarding green mineral cooperation, witnessed by the presidents of the two countries on Saturday at the Great Hall of the People, China.

Another MoU relates to the cooperation of mineral resources, which was signed by Bahlil and Zheng Shanjie as Chairman of the National Development and Reform Commission (NDRC).

"This MoU marks a new chapter in the strategic cooperation between Indonesia and China. This collaboration will not only strengthen the sustainable mineral supply chain, but will also encourage significant investment in the development of clean energy in both countries," Bahlil said after the signing, quoted from a press release from the ministry.

Bahlil said this collaboration shows the seriousness of Indonesia and China in realizing global commitments to accelerate the sustainable energy transition process.

"Together we contribute in achieving global goals for a just and inclusive energy transition," he continued.

The NDRC and MOFCOM are two Chinese government agencies authorized to approve outbound investments by companies from the country abroad.

The MoU in collaboration with green minerals with MOFCOM which was signed aims to encourage the development of the "green" mineral industry from mining to downstreaming in Indonesia, which is in line with the commitments of the two countries in overcoming climate change.

The term mineral "green" refers to mineral products needed for the development of green and low-carbon industries, as well as exploration, development, and utilization of environmentally friendly and sustainable mineral resources at all stages.

"For Indonesia, this can open up great opportunities to develop a green mineral industry with high value. In the future, green minerals will be the key in developing clean energy as directed by President Prabowo," he said.

Meanwhile, the MoU for mineral fields with NDRC focuses on developing and utilizing minerals that are urgently needed in modern industries.

This opens up opportunities for both parties to explore investment opportunities and cooperation in the mineral resource sector from mining to downstreaming, as well as strengthening the supply chain of safe and sustainable mineral resources.

Through this collaboration, the Ministry of Energy and Mineral Resources will play an important role in strengthening bilateral cooperation between the two countries in the mineral sector, and is expected to increase investment in the Indonesian mineral sector.

Indonesia and China have a bilateral forum for routine biennial, namely the Indonesia-China Energy Forum (ICEF). The 7th ICEF will be held in Bali on September 3, 2024.

The meeting reiterated the commitment of the two countries to strengthen cooperation in the field of conventional and non-conventional oil and gas development, coal, electricity, and clean energy.

In addition, Indonesia also offers various investment opportunities in the oil and gas, coal, electricity and EBT sub-sectors. The Forum also discusses opportunities for funding energy projects supported by financial institutions such as Sinosure, China Development Bank, and Exim Bank of China.