Indonesia Bets Big on Rare Earth Magnets by 2028 to Break Supply Chain Dependence
Indonesia is pushing to produce permanent magnets domestically by 2028, aiming to process its rare earth minerals at home instead of exporting raw materials, a move that could reshape its role in the global critical minerals market.
JAKARTA — Indonesia has set a concrete 2028 target to begin producing permanent magnets, a critical component used in electric vehicles, wind turbines, and electronics, as part of a broader push to build a complete domestic rare earth industry [217405]. The announcement signals a major shift from exporting raw minerals toward higher-value processing and manufacturing.
Permanent magnets are essential for clean energy technologies and modern electronics. By producing them locally, Indonesia aims to capture more economic value from its rare earth reserves and reduce dependence on foreign processing capabilities [217405]. The plan aligns with the government’s existing policy of banning raw mineral exports to encourage foreign companies to build processing facilities within the country.
The 2028 timeline represents a concrete milestone for a project that has been under discussion for several years. However, officials have not yet disclosed specific investment figures or identified the exact mining sites that will supply the necessary materials [217405]. Analysts note that developing a rare earth magnet industry is technically challenging and requires significant expertise, meaning Indonesia will need to secure both technology and skilled labor to meet its deadline [217405].
Despite these hurdles, the government’s commitment suggests that rare earth processing is now a central pillar of its industrial agenda. If successful, Indonesia could become a key player in the global supply chain for critical minerals, which are increasingly sought after as countries race to secure resources for green energy transitions [217405].