US and Indonesia Forge Critical Minerals Partnership Under Prabowo-Trump Agreement
Washington D.C. – A new era of economic cooperation between the United States and Indonesia is underway, focused on critical minerals and downstream industrial development. The partnership, solidified by a trade agreement signed by Indonesian President Prabowo Subianto and US President Donald Trump on February 19, 2026, aims to facilitate US investment in Indonesia’s mineral processing sector while upholding Indonesia’s commitment to its national downstream program.
Investment Opportunities for US Businesses
According to Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia, US businesses will be welcomed to invest in and develop Indonesia’s mineral resources, operating within the framework of existing Indonesian regulations. The agreement prioritizes support and facilitation for these investments, including opportunities for mineral exploration and the construction of smelters.
No Change to Raw Mineral Export Policy
Despite the increased collaboration, Indonesia remains steadfast in its commitment to downstream industrialization. Minister Lahadalia explicitly stated that there will be no changes to the policy prohibiting the export of raw minerals. The focus remains on refining minerals domestically and exporting finished products. “We will encourage [US companies] to build a smelter in Indonesia for nickel, we will give it as much space as possible, the same as other countries,” Lahadalia affirmed. Jakarta Globe
Investment Schemes and Partnerships
The Indonesian government is offering two primary investment schemes for US companies: direct investment in mineral exploration and partnerships or joint ventures with Indonesian State-Owned Enterprises (BUMN). Once downstream processing facilities, such as smelters, are established, companies will be permitted to export the refined products to the United States.
Building on Existing Successes
This new agreement builds upon existing successful collaborations, such as the investment by Freeport Indonesia in a nearly $4 billion copper smelter facility. Indonesia intends to replicate this model for other critical minerals, including nickel, rare earth metals, and gold. Jakarta Globe
$7 Billion in Agreements Signed
Prior to the meeting between Presidents Prabowo and Trump, Indonesian and US companies signed trade and investment agreements exceeding $7 billion. These agreements included a memorandum of understanding between mining company Freeport McMoRan and Indonesia’s investment ministry to collaborate on critical minerals, and a partnership between PT Pertamina (Persero) and Halliburton Co. To enhance oilfield recovery. Petromindo
Broader Strategic Cooperation
President Prabowo Subianto’s visit to the United States, beginning on February 17, 2026, also focused on broader strategic economic cooperation, trade negotiations, and investment partnerships. He was accompanied by Minister Bahlil Lahadalia and Cabinet Secretary Teddy Indra Wijaya. Antara News, Setkab
The visit also included attendance at the inaugural summit of the Gaza Board of Peace (BoP). Antara News