India to Invest in Indonesia’s Metal Downstream Industry

Jakarta – India’s Ministry of Steel is actively pursuing investment opportunities in Indonesia’s burgeoning metal downstream industry, signaling a strengthened economic partnership between the two nations. The move aims to bolster Indonesia’s national energy security and foster sustainable, long-term economic growth.

Cooperation Framework and Investment Focus

Discussions regarding this collaboration took place on February 24, 2026, during a meeting between Yuliot Tanjung, Deputy Minister of Indonesia’s Ministry of Energy and Mineral Resources (ESDM), and Sandeep Poundrik, Secretary General of India’s Ministry of Steel . India intends to encourage its companies to invest specifically in Indonesia’s metal sector.

Beyond direct investment, the two countries are exploring joint development of capital goods – machinery, heavy equipment, and factory equipment – essential for supporting the continued downstreaming of Indonesia’s metal industry . This collaboration extends to research and innovation aimed at increasing the efficiency of these capital goods.

Memorandum of Understanding (MOU) in Development

To formalize this cooperation, India will submit a draft Memorandum of Understanding (MOU) to Indonesia. The MOU will then be reviewed by Indonesia’s Ministry of Foreign Affairs before being finalized and signed at the ministerial level, involving the Minister of Energy and Mineral Resources and the Minister of Steel from India .

Broader Critical Mineral Strategy

This investment follows Indonesia’s recent agreement with the United States to establish critical mineral trade cooperation, formalized through a reciprocal trade agreement signed on February 19, 2026 . Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasized that these partnerships are integral to the nation’s strategy of preventing the export of raw minerals and prioritizing domestic processing industries .

Indonesia is offering two investment schemes to US companies: direct exploration or partnerships with Indonesian State-Owned Enterprises (BUMN). The government maintains its commitment to open and equitable investment opportunities for all countries, ensuring fair treatment and fostering mutually beneficial cooperation .

Recent Visits

Sandeep Poundrik, Secretary of India’s Ministry of Steel, conducted a three-day working visit to Jakarta from February 23-25, 2026, to further discuss these opportunities and .