Indonesia mining revenue rises amid calls for tech adoption

Indonesia’s mining sector saw a significant rise in non-tax revenue, reaching 108 trillion rupiah (US$6.15 billion) through August 31, up 21 trillion rupiah from the previous year. This growth was driven by higher commodity prices, particularly in coal and nickel, despite fluctuations in production volumes.

Industry leaders and organizations are emphasizing several strategic shifts for the sector. Kadin Indonesia is urging mining companies to increase capital efficiency and accelerate technology adoption, such as AI and electrification, to mitigate geopolitical pressures and cost volatility. MIND ID highlighted that continuous exploration remains the essential foundation for long-term resource development and downstream processing.

In the energy sector, Pertamina is being encouraged by Danantara and BP BUMN to boost domestic LNG production to reduce import dependency. Projections suggest LNG could account for over 50 percent of the gas supply by 2029. Additionally, Pertamina is developing gas networks and compressed natural gas (CNG) to serve residential areas and reduce reliance on imported LPG.

Technological advancements are also a major focus at the Mining Indonesia 2026 exhibition, where companies like XCMG and Hytera are showcasing green solutions, including electric heavy equipment and advanced communication systems designed for complex mining environments.