Airlangga Hartarto, from business to politics

Navigating the Mineral Security Partnership: A New Era in Global Resource Management

The global energy transition hinges on access to critical minerals, essential components for clean energy technologies and various industrial applications. Recognizing this, the U.S. Department of State launched the Mineral Security partnership (MSP) in 2022,aiming to create a more secure and enduring global mineral supply chain.

A Collaborative Approach to Critical Minerals

The MSP is a multi-nation initiative currently involving 14 countries, including Australia, Canada, Japan, germany, Finland, and the European Union. These nations collaborate on identifying, developing, and financing mineral projects that adhere to strict environmental, social, and governance (ESG) standards.

“We believe that Indonesia’s collaboration, if it joins the MSP, will bring better investment for indonesia, not just any investment, but investments that benefit the community, respect labor laws, and uphold environmental regulations,” stated U.S. Deputy Secretary of State for Economic Growth, energy, and the Habitat, Jose Fernandez, during a visit to Indonesia in July 2024.

Rising geopolitical significance

The MSP occupies a critical position within the broader geopolitical landscape. The dominance of China in critical mineral processing, as highlighted by the International Energy Agency (IEA) Critical Minerals Market Review 2023, underscores the strategic importance of diversifying supply chains. China currently leads in the processing of lithium, cobalt, nickel, copper, and rare earth elements, raising concerns about potential market manipulation and supply disruptions.

China’s control over these critical minerals gives it a meaningful advantage in various sectors, including clean energy, defense, and manufacturing. The MSP,therefore,can be viewed as a strategy to mitigate these risks and create a more balanced global power dynamic.

Indonesia: balancing Opportunities and Challenges

Indonesia, a country rich in critical minerals like copper and cobalt, finds itself at the crossroads of this global shift. While Indonesia possesses strong bargaining power, it must navigate the complexities of responsible resource management and foreign investment.

Indonesia’s regulatory framework includes laws promoting environmental protection, community involvement, and good governance in the mining sector. The nation’s commitment to openness through its participation in the Extractive Industries Transparency Initiative (EITI) further demonstrates its dedication to responsible resource management.

President-elect Prabowo Subianto’s outreach to various countries, including the United States, China, Russia, and Turkey, signals Indonesia’s willingness to engage in strategic partnerships to maximize the benefits of its mineral resources while safeguarding its national interests.

Looking Ahead: A Partnership for a Sustainable Future

the Mineral Security Partnership represents a significant step towards a more sustainable and equitable global mineral ecosystem. By fostering collaboration, transparency, and responsible practices, the MSP aims to ensure that the benefits of critical minerals reach all stakeholders while minimizing environmental and social impacts.

As Indonesia navigates its role within this evolving landscape, striking a balance between economic prosperity, environmental sustainability, and social responsibility will be crucial for securing a prosperous future for both its people and the global community.

What are some specific steps Indonesia can take to maximize the benefits of its mineral resources while minimizing environmental and social impacts?

Title: Navigating the Mineral Security Partnership: Fostering a Sustainable global Resource Management – An interview with Dr. Leila Khan,Senior Advisor to President-elect Prabowo Subianto on Mineral Policy

1. A New Era in Global Resource Management

Archyde News: Dr. Khan, thank you for joining us today.The U.S.Department of State’s Mineral Security Partnership (MSP) is bringing together nations like Australia, Canada, and Germany to secure critical mineral supply chains. What does this initiative mean for Indonesia, given its own significant mineral reserves?

Dr. Leila Khan: Thank you for having me. The MSP is indeed a significant development, offering Indonesia an opportunity to engage with a multilateral effort that aligns with our interests. With our rich deposits of copper,cobalt,and other critical minerals,Indonesia stands to play a crucial role in this global initiative.

2. Balancing Economic Prosperity and Environmental Sustainability

Archyde News: Indonesia has made strides in promoting responsible mining practices thru regulations and initiatives like the EITI. How does the MSP fit into Indonesia’s commitment to sustainability and good governance?

Dr. Leila Khan: The MSP’s focus on Environmental, Social, and Governance (ESG) standards resonates strongly with Indonesia’s own commitments.By emphasizing transparency,community involvement,and environmental protection,the MSP provides a framework that complements our existing efforts. Participation in the MSP will not only help us access global finance for our mineral projects but also foster mutual learning and capacity building.

3. Navigating Geopolitical Dynamics

Archyde News: Given China’s dominance in critical mineral processing, how does Indonesia plan to mitigate potential risks and create a more balanced global power dynamic?

Dr.Leila Khan: Geopolitics plays a significant role in our strategic considerations. Indonesia aims to diversify its partnerships and explore collaboration with various countries and blocs, including the MSP nations. By doing so, we hope to create a more resilient and balanced global mineral supply chain, reducing reliance on a single player. It’s all about maintaining strategic autonomy while benefiting from international cooperation.

4. A Partnership for a Sustainable Future

Archyde News: President-elect Prabowo has reached out to several countries,signaling Indonesia’s intent to engage strategically. What can we expect from Indonesia’s role in the MSP, and how can this partnership contribute to a prosperous future for both Indonesia and the global community?

Dr. Leila Khan: Indonesia’s engagement with the MSP aligns with our vision of a sustainable, equitable, and prosperous future. By fostering collaboration, transparency, and responsible practices, we aim to ensure that the benefits of our mineral resources reach all stakeholders while minimizing environmental and social impacts. We look forward to working with our MSP partners to achieve these goals and create a more resilient global mineral ecosystem.

In your opinion, what are some specific steps Indonesia can take to maximize the benefits of its mineral resources while minimizing environmental and social impacts? Share your thoughts and ideas in the comments below!