According to reports, Indonesian customs authorities have implemented new checks on radioactive materials such as rare earths and uranium, causing delays in the export of certain metal products. Informed sources indicate that shipments of multiple batches have been held up this month due to the customs department's demand for additional testing on specific critical minerals. These sources further note that both alumina, which can be processed into aluminum, and exports of nickel pig iron have been impacted. Official spokespersons from Indonesia have not yet responded to this matter. It remains unclear how long this disruption will persist and the total volume of affected exports.
Historically, Indonesia has frequently used trade policy measures to foster the development of its downstream processing industries for mineral resources, thereby increasing added value. The country banned the export of raw materials like nickel ore and bauxite several years ago. Subsequently, the Indonesian government shifted its focus to rare earth resources, with a regulation enacted last year mandating priority for domestic use. In August 2025, Indonesia formally established a Mineral Industry Bureau, aiming to bring all management of rare earth resources under full state supervision and no longer accessible to private enterprises or the public.
Rare earth elements encompass 17 metallic elements that, due to similar chemical properties, often coexist in nature. They possess unique optical, electrical, and magnetic properties and are widely utilized in new energy, electronics, and aerospace sectors. Earlier this month, Indonesian prosecutors released a list of suspects in a case involving the illegal export of materials containing rare earths. According to reports, three individuals allegedly falsified laboratory test reports used to obtain export permits, deliberately concealing the rare earth content within the materials.
Coal, palm oil, and nickel are Indonesia's top three export commodities. This Southeast Asian nation is not a major supplier of rare earths or uranium, although these elements can be found as by-products during the processing of certain primary metals. For example, tin mining operations produce significant amounts of monazite, a mineral from which rare earth elements can be extracted.