Green Arms Race: Indonesia's Critical Minerals and its Sprint for Renewable Energy Sovereignty
DOI:
https://doi.org/10.70710/sitj.v2i1.30Keywords:
Competitive Intelligence, Critical Minerals Acquisition, Green Technology, Power Struggle, Renewable Energy SovereigntyAbstract
The increasing global demand for renewable energy has pushed countries around the world to compete in acquiring critical minerals and developing green technology. This article aims to examine the policies, regulations, and incentives implemented by the Indonesian government to leverage its vast reserves of critical minerals such as nickel, tin, and rare earth elements. It also aims to compare Indonesia's approach with the strategies employed by major players like China and the United States. The analysis highlights Indonesia's strengths, including its mineral wealth and supportive policies, as well as challenges such as technological readiness and regulatory hurdles. The research aims to provide insights into how Indonesia can enhance its renewable energy capabilities and achieve energy sovereignty while navigating the complex geopolitical landscape by using SWOT and intelligence analysis. The results indicate that the Indonesian government must improve its efforts to maximize its own potential, including by maintaining the availability of mineral resources, establishing robust regulations, and providing incentives for developers in the renewable energy sector. Additionally, it is crucial to promptly address the issues that hinder Indonesia's progress in achieving renewable energy sovereignty, such as updating mineral reserve data, adapting technology and improving human resources, and enhancing oversight to prevent illegal smuggling of mineral resources for renewable energy.
Downloads
References
Adler, A. R., & Ryan, H. (2022, June). An Opportunity to Address China’s Growing Influence over Latin America’s Mineral Resources. Lawfare. Retrieved June 12, 2024, from https://www.lawfaremedia.org/article/opportunity-address-chinas-growing-influence-over-latin-americas-mineral-resources
Ambrose, M., Jacobs, J., & Tham, N. (2022, November 14). CHIPS and Science Act Summary: Energy, Climate, and Science Provisions. Bipartisan Policy Center. Retrieved June 1, 2024, from https://bipartisanpolicy.org/blog/chips-science-act-summary/
America’s chance to become a clean-energy superpower. (2023, April 5). The Economist. https://www.economist.com/united-states/2023/04/05/americas-chance-to-become-a-clean-energy-superpower
Anbiyak, N., & Cahyaningrum, T. (2020). Identifikasi Zona Kaya Kobalt pada Cebakan Nikel Laterit di Indonesia. Indonesian Mining Professionals Journal, 2(2), 103–110.
Badlam, J., Clark, S., Gajendragadkar, S., Kumar, A., O’Rourke, S. S., & Swartz, D. (2022, October 4). The CHIPS and Science Act: Here’s what’s in it. McKinsey & Company. https://www.mckinsey.com/industries/public-sector/our-insights/the-chips-and-science-act-heres-whats-in-it
Balaram, V. (2019). Rare earth elements: A review of applications, occurrence, exploration, analysis, recycling, and environmental impact. Geoscience Frontiers, 10(4), 1285–1303. https://doi.org/10.1016/j.gsf.2018.12.005
Bradsher, K. (2010, September). Amid Tension, China Blocks Vital Exports to Japan. The New York Times. Retrieved June 15, 2024, from https://www.nytimes.com/2010/09/23/business/global/23rare.html
Castillo, R., & Purdy, C. (2022). China’s Role in Supplying Critical Minerals for the Global Energy Transition: What Could the Future Hold? In The Leveraging Transparency to Reduce Corruption Project. The Brookings Institution.
Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.) [PDF]. SAGE Publications, Inc. https://spada.uns.ac.id/pluginfile.php/510378/mod_resource/content/1/creswell.pdf
Daly, T., & Chow, E. (2021, January). Indonesia stays China’s second-biggest nickel ore supplier despite export ban. Reuters. Retrieved June 15, 2024, from https://www.reuters.com/article/idUSL4N2JP36N/
DiPippo, G., Mazzocco, I., Kennedy, S., & Goodman, M. P. (2024). Red Ink: Estimating Chinese Industrial Policy Spending in Comparative Perspective. https://www.csis.org/analysis/red-ink-estimating-chinese-industrial-policy-spending-comparative-perspective
Energy Observer. (2023). Critical Minerals, Heroes of The Energy Transition. In Energy Observer. Retrieved June 22, 2024, from https://www.energy-observer.org/resources/critical-minerals
Farooki, M. (2018). China’s Mineral Sector and the Belt & Road Initiative. In Strategic Dialogue on Sustainable Raw Materials for Europe (STRADE) No. 2/2018. Strategic Dialogue on Sustainable Raw Materials for Europe (STRADE). Retrieved June 11, 2024, from https://www.stradeproject.eu/fileadmin/user_upload/pdf/STRADE_PB_02-2018_One_Belt_One_Road.pdf
Fitriyani, E. (2023, December 18). Langka di Dunia, Laut RI Punya Logam Tanah Jarang 4,6 Miliar Meter Kubik. Kumparan. https://kumparan.com/kumparanbisnis/langka-di-dunia-laut-ri-punya-logam-tanah-jarang-4-6-miliar-meter-kubik-21nCUs0Aio4
Gabriel, T., & Mihai, V. (2020). Particularities of Economic Intelligence as an Information Resource on the Matrix of National Intelligence. The 15th International Scientific Conference, 256–265.
He, F. (2024, January). Mongolia’s Development of Critical Minerals: Opportunities and Challenges | The National Bureau of Asian Research (NBR). South China Morning Post. Retrieved June 15, 2024, from https://www.nbr.org/publication/mongolias-development-of-critical-minerals-opportunities-and-challenges/
House, W. (2023, March 29). Fact Sheet: The Bipartisan Infrastructure Deal. The White House. https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/06/fact-sheet-the-bipartisan-infrastructure-deal/
IMF. (2023). World Investment Report 2023. In International Monetary Fund. Forty-Second Meeting of the IMF Committee on Balance of Payments Statistics. Retrieved June 15, 2024, from https://www.imf.org/external/pubs/ft/bop/2023/pdf/42/23-21.pdf
Indonesia Corruption Watch. (2024, April 1). Kasus Korupsi PT Timah: Potret Buruk Tata Kelola Sektor Ekstraktif. Retrieved June 14, 2024, from https://antikorupsi.org/id/kasus-korupsi-pt-timah-potret-buruk-tata-kelola-sektor-ekstraktif
International Energy Agency. (2024, May 1). Global Critical Minerals Outlook 2024 – Analysis - IEA. IEA. Retrieved June 15, 2024, from https://www.iea.org/reports/global-critical-minerals-outlook-2024
International Renewable Energy Agency. (2019). A New World: The Geopolitics of the Energy Transformation [PDF]. The Global Commission on the Geopolitics of Energy Transformation.
Irzon, R. (2021). Tin Mining in Indonesia: History, Current Status, and Future Prospect. Jurnal Teknologi Mineral Dan Batubara, 17(3), 179–189.
ISS Insights. (2021, October 29). Winning the Net Zero Arms Race – Commitment vs Action as Investors Seek Answers on Sovereign Climate Performance. ISS Insights. Retrieved June 22, 2024, from https://insights.issgovernance.com/posts/winning-the-net-zero-arms-race-commitment-vs-action-as-investors-seek-answers-on-sovereign-climate-performance/
Kementrian ESDM. (2023, January 31). Investasi dan PNBP Subsektor Mineral dan Batubara Tahun 2022 Melampaui Target. Kementrian ESDM Dirjen Mineral Dan Batubara. Retrieved June 15, 2024, from https://www.minerba.esdm.go.id/berita/minerba/detil/20230131-investasi-dan-pnbp-subsektor-mineral-dan-batubara-tahun-2022-melampaui-target
King, A., & Armstrong, S. (2013, August). Did China really ban rare earth metals exports to Japan? East Asia Forum. Retrieved June 15, 2024, from https://eastasiaforum.org/2013/08/18/did-china-really-ban-rare-earth-metals-exports-to-japan/
Lipton, E., & Searcey, D. (2021, December 7). How the U.S. Lost Ground to China in the Contest for Clean Energy. The New York Times. Retrieved June 2, 2024, from https://www.nytimes.com/2021/11/21/world/us-china-energy.html?pgtype=Article&action=click&module=RelatedLinks
Lipton, E., Searcey, D., & Forsythe, M. (2021, December 7). A Power Struggle Over Cobalt Rattles the Clean Energy Revolution. The New York Times. Retrieved June 2, 2024, from https://www.nytimes.com/2021/11/20/world/china-congo-cobalt.html?unlocked_article_code=1.x00.JThC.RayXmfAMgsD6&smid=url-share
Liu, W. H., Langhammer, R. J., Dohse, D., & Bickenbach, F. (2024, April 1). Foul Play? On the Scale and Scope of Industrial Subsidies in China. Kiel Institute. https://www.ifw-kiel.de/publications/foul-play-on-the-scale-and-scope-of-industrial-subsidies-in-china-32738/
Lu, C. (2023, November 10). Beijing Tightens Its Grip on Critical Mineral, Rare-Earth Supply Chains. Foreign Policy. https://foreignpolicy.com/2023/11/07/china-critical-mineral-rare-earth-supply-chain-electric-vehicle/
Martin, N. (2024, April 11). From solar to EVs: How China is overproducing green tech. dw.com. https://www.dw.com/en/from-solar-to-evs-how-china-is-overproducing-green-tech/a-68782157
McRae, M. E. (2024). Nickel. In U.S. Geological Survey, Mineral Commodity Summaries.
Merriam, S. B., & Tisdell, E. J. (2016). Qualitative Research: A Guide to Design and Implementation (4th ed.) [PDF]. Jossey Bass.
Mordor Intelligence. (2024). Tin Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029). In Mordor Inteligence. Retrieved June 15, 2024, from https://www.mordorintelligence.com/industry-reports/tin-market
Muliawati, F. D. (1970, January 1). 47 Komoditas RI Jadi Mineral Kritis, Ternyata Ini Alasannya.. CNBC Indonesia. https://www.cnbcindonesia.com/news/20231020123554-4-482271/47-komoditas-ri-jadi-mineral-kritis-ternyata-ini-alasannya
Munandar, A. I., Siregar, H., Andati, T., & Anggraeni, L. (2019, December 1). Price Determinant of Tin Price. | Journal of Economic & Management Perspectives | EBSCOhost. https://openurl.ebsco.com/EPDB%3Agcd%3A6%3A8093174/detailv2?sid=ebsco%3Aplink%3Ascholar&id=ebsco%3Agcd%3A143736852&crl=c
Neuman, L. (2014). Social Research Methods: Qualitative and Quantitative Approaches (7th ed.) [PDF]. Pearson Education Limited. https://letrunghieutvu.yolasite.com/resources/w-lawrence-neuman-social-research-methods_-qualitative-and-quantitative-approaches-pearson-education-limited-2013.pdf
New Economy Brief. (2023, April 5). The UK in the “green arms race” | NEB Digest. New Economy Brief. Retrieved June 22, 2024, from https://www.neweconomybrief.net/the-digest/the-uk-in-the-green-arms-race
NS Energy. (2020, May 10). Bayan Obo Rare Earth Mine, Inner Mongolia, China. Retrieved June 15, 2024, from https://www.nsenergybusiness.com/projects/bayan-obo-rare-earth-mine/
Nurcahyo, P. Y. (2022, February 28). Pengembangan SDM Jadi Faktor Penentu Transisi Energi. Jenderal EBTKE - Kementerian ESDM. Retrieved June 15, 2024, from https://ebtke.esdm.go.id/post/2022/02/28/3096/pengembangan.sdm.jadi.faktor.penentu.transisi.energi?lang=en
Oetomo, H. W., & Ardini, L. (2012). SWOT Analysis in Strategic Management: A Case Study at Surabaya Bus Station. Journal of Economics, Business & Accountancy Ventura, 15(2), 171. https://doi.org/10.14414/jebav.v15i2.73
Paravantis, J. A., & Kontoulis, N. (2020). Energy Security and Renewable Energy: A Geopolitical Perspective. In IntechOpen eBooks. https://doi.org/10.5772/intechopen.91848
Potensi Industri Timah di Indonesia. (2023, July). ICDX Group. Retrieved June 12, 2024, from https://www.icdx.co.id/news-detail/publication/potensi-industri-timah-di-indonesia
PT. Timah Tbk. (2020). Integrated Annual Report. Retrieved June 12, 2024, from https://timah.com/userfiles/post/2103166050097BA4F96.pdf
Ramadhana, M. A., Maulana, M. S., Nugraha, Z. F., Subagja, R. E. G., & Wijaya, M. M. (2024). Gugatan Uni Eropa Terhadap Pembatasan Ekspor Nikel Indonesia. Doktrin: Jurnal Dunia Ilmu Hukum Dan Politik, 2(2), 185–199. https://doi.org/10.59581/doktrin.v2i2.2598
Raw Nickel in China. (2024). In Observatory of Economic Complexity. Retrieved June 15, 2024, from https://oec.world/en/profile/bilateral-product/raw-nickel/reporter/chn?subnationalFlowSelector=flow0&subnatTradeValueSelector=tradeScale2&subnationalTimeSelector=timeYear
Sammut‐Bonnici, T., & Galea, D. (2015). SWOT Analysis. Wiley Encyclopedia of Management, 1–8. https://doi.org/10.1002/9781118785317.weom120103
Satchwell, I. (2024, June 7). China’s control and coercion in critical minerals | The Strategist. The Strategist. https://www.aspistrategist.org.au/chinas-control-and-coercion-in-critical-minerals/
Schonhardt, S. (2024, February 20). China Invests $546 Billion in Clean Energy, Far Surpassing the U.S. Scientific American. https://www.scientificamerican.com/article/china-invests-546-billion-in-clean-energy-far-surpassing-the-u-s/
Sjöström, T., & Baliga, S. (2004). Arms Races and Negotiations. The Review of Economic Studies, 71(2), 351–369. http://www.jstor.org/stable/3700629
Soegirman, S. (2009). Analisis Intelijen: Sebuah Kontemplasi (1st ed.) [Hardcopy]. Centre for the Study of Intelligence and Counterintelligence.
Suprapto, S. J. (2009). Tinjauan tentang Unsur Tanah Jarang. Buletin Sumber Daya Geologi, 4(1), 36–48.
Tama, A. A. (2021). Peran Intelijen Ekonomi Pada Pertambangan Rare Earth Element Dalam Rangka Penguatan Ekonomi Nasional.
Tarver, E. (2023, May 21). Business Intelligence vs. Competitive Intelligence: What's the Difference? Investopedia. https://www.investopedia.com/ask/answers/040915/what-difference-between-business-intelligence-and-competitive-intelligence.asp#:~:text=Competitive%20intelligence%20is%20the%20outward,help%20improve%20efficiency%20and%20growth
The metals of the future: how critical is nickel? (2024, March 18). Lombard Odier. https://www.lombardodier.com/contents/corporate-news/responsible-capital/2024/march/the-metals-of-the-future-how-cri.html
The Week. (2023, June 22). The green arms race explained. Theweek. Retrieved June 15, 2024, from https://theweek.com/news/environment/961360/the-green-arms-race
The White House. (2023). Inflation Reduction Act Guidebook | Clean Energy | The White House. In The White House. Retrieved June 22, 2024, from https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/
Timmermann, C., & Noboa, E. (2022). Energy Sovereignty: A Values-Based Conceptual Analysis. Science and Engineering Ethics, 28(6). https://doi.org/10.1007/s11948-022-00409-x
Umar, N. (2024, April 5). Sah! 22 Komoditas Mineral sebagai Mineral Strategis untuk Meningkatkan Daya Saing Industri Nasional. Mapikor-News.com. Retrieved June 22, 2024, from https://mapikornews.com/daerah/sah-22-komoditas-mineral-sebagai-mineral-strategis-untuk-meningkatkan-daya-saing-industri-nasional/
United States Department of State. (2024, March 27). Minerals Security Partnership - United States Department of State. Retrieved June 15, 2024, from https://www.state.gov/minerals-security-partnership/#Principles
U.S. Geological Survey. (2023). Mineral Commodity Summaries 2023. In USGS Publications Warehouse. https://doi.org/10.3133/mcs2023
USGS. (2024). TIN. U.S. Geological Survey, Mineral Commodity Summaries, January 2024.
Vats, N. (2020, October 6). China’s strategy towards Papua New Guinea - Engaging the nation for its resources. Cescube. Retrieved June 22, 2024, from https://www.cescube.com/vp-china-s-strategy-towards-papua-new-guinea-engaging-the-nation-for-its-resources
Vivoda, V. (2023). Friend-shoring and critical minerals: Exploring the role of the Minerals Security Partnership. Energy Research & Social Science, 100, 103085. https://doi.org/10.1016/j.erss.2023.103085
Welle, D. (2024, April 5). Chinese subsidies endanger world economy, says US’ Yellen. dw.com. https://www.dw.com/en/chinese-subsidies-endanger-world-economy-says-us-yellen/a-68745960
WIPO. (2024). Indonesia Intellectual Property Statistics. World Intellectual Property Organization. Retrieved June 15, 2024, from https://www.wipo.int/directory/en/details.jsp?country_code=ID
Wishnick, E. (2020, August 31). Raring to Go Mining in Greenland: Shenghe and the Kvanefjeld Rare Earth Project. China Resource Risk. https://www.chinasresourcerisks.com/post/china-and-rare-earths
Wochner, K. G. P. H. P. N. T. (2023). The Global Impact of the U.S. Inflation Reduction Act: Evidence from an International Expert Survey. ideas.repec.org. https://ideas.repec.org/p/ces/econpr/_41.html
World Population Review. (2024). Tin Production by Country 2024. Retrieved June 12, 2024, from https://worldpopulationreview.com/country-rankings/tin-production-by-country
Yang, C., Tan, Q., Zeng, X., Zhang, Y., Wang, Z., & Li, J. (2018). Measuring the sustainability of tin in China. Science of the Total Environment, 635, 1351–1359. https://doi.org/10.1016/j.scitotenv.2018.04.073
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Security Intelligence Terrorism Journal (SITJ)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
