Indonesia's State-Owned Mining Holding Company, MIND ID, is optimistic about becoming a market leader and a global price setter for commodities in the future.
This optimism is supported by the fact that Indonesia possesses vast mineral and coal reserves and has the capability to form strategic alliances that can support price regulation efforts in the future.
MIND ID CEO, Hendi Prio Santoso, explained that Indonesia currently relies on commodity indices from other countries. For instance, in the coal sector, Indonesia still depends on indices from Australia or other nations, despite being the world's largest coal producer.
Similarly, Indonesia has not yet become the price setter for tin globally, despite its abundant tin resources. Together with China and Peru, these leading tin-producing countries could emulate the Organization of the Petroleum Exporting Countries (OPEC) model to set prices.
Hendi stated that MIND ID is proactively enhancing exploration activities aggressively and selectively to optimize resource management in response to global demand.
MIND ID is also working to enhance its current capabilities, further develop downstream business scales and industrialization, thereby continuously increasing the value-added from the minerals managed.
In addition, MIND ID is actively building strategic alliances for new downstream business expansions, which will further strengthen Indonesia’s position in the global supply chain.
"We hope that, in the not-too-distant future, we can become a global price setter. This is one of the main goals we aim to achieve together within the MIND ID Group," said Hendi in a written statement on Tuesday, September 17, 2024.
Becoming a Global Key Player
Hendi noted that most of the mineral commodities managed by MIND ID are traded on the London Metal Exchange in the UK. Indonesia is also continuously enhancing its bargaining position as a global player for critical and strategic mineral commodities.
MIND ID continues to collaborate with relevant stakeholders to establish a stringent national production quota, which will serve as a production benchmark for all mineral mining industry players in Indonesia. Ultimately, this will help Indonesia influence pricing.
Furthermore, as a global-class company, MIND ID prioritizes optimal mineral reserve management and adheres to the principles of sustainable mining.
"Thus, our efforts to become a market leader and global price setter will significantly impact and benefit the prosperity of all Indonesian people," emphasized Hendi.
