MIND ID Aims To Determine Global Mining Commodity Prices

Mining (Photo: Doc Antara)

JAKARTA - BUMN Mining Industry Holding, MIND ID, revealed its mission to make Indonesia a global price set for mineral commodities. This strategic step aims to maximize added value from mineral management, while increasing the benefits earned by the state as the owner of mineral resources.

MIND ID's Corporate Secretary, Heri Yusuf, explained that so far Indonesia has relied on global market price movements dominated by large traders.

As a result, mineral commodity-owning countries often have to follow the price trend set by traders and receive minimal margins.

The global index market is currently controlled by many traders. We are trying to build a strategic partnership so that reserve-owning countries, especially Indonesia, can have better bargaining power in the future," he said, quoted on Thursday, November 21.

Heri added that as the manager of the country's strategic mineral reserves, MIND ID is actively establishing partnerships with companies from countries that have important mineral commodity reserves.

The hope is that a global agreement will be created that will allow the management of mineral reserves to meet the world's needs, as well as to receive an optimal margin for reserve-owning countries.

For example, Heri mentioned that in tin commodities, the three largest producing countries, namely Indonesia, China, and Peru, supply 90 percent of the world's needs. With this condition, MIND ID has started exploring partnerships with one of the companies in China to form strategic alliances in tin commodities.

We have mapped this potential well. We hope to influence many other partners to collaborate, so that we can jointly become drivers of global mineral commodity prices," he added.

Furthermore, Heri said that the MIND ID Group will also continue to strengthen mineral governance. The reason is, one important step is to ensure discipline in managing mineral supply as a reference for industry players in Indonesia.

Issues such as Unlicensed Mining (PETI) must be minimized, so that no mineral supply goes out to the global market uncontrollably, which could undermine future price deals," he concluded.