The proposed framework will lay the groundwork for establishing BMKS, aimed at improving mineral price transparency and strengthening Indonesia’s position in strategic commodity trading.
The Ministry of Energy and Mineral Resources (ESDM) is preparing the regulatory framework for the establishment of the Mineral and Strategic Commodity Exchange (BMKS), as part of efforts to strengthen mineral trading governance and provide greater certainty for investors in the mining and downstream sectors.
Yan Abrar, Coordinator for Mineral and Coal Cooperation and Investment at the ministry’s Directorate General of Mineral and Coal, said the government is developing the foundation for the proposed exchange to improve domestic mineral pricing mechanisms and strengthen Indonesia’s bargaining position in international commodity markets.
“Indonesia is preparing the foundation for establishing a national Mineral and Strategic Commodity Exchange. The objective is to improve price transparency and strengthen Indonesia’s role in trading strategic mineral products,” Yan said during the Indonesia-Korea Energy Forum (IKEF) in Sanur, Bali, on Wednesday, October 28, 2026.
Yan emphasized that regulatory certainty is essential to attracting foreign investment, citing the government’s commitment to maintaining its downstream industrialization policy, which has been implemented for more than 15 years.
The policy is rooted in Law No. 4/2009 on Mineral and Coal Mining, which mandates domestic mineral processing and has subsequently evolved to strengthen resource governance and increase the value added to mineral production.
Regulatory reforms backed by digital oversight
The proposed BMKS framework forms part of broader government efforts to improve mineral market discipline through annual Work Plan and Budget (RKAB) approvals, benchmark-based pricing and production controls, including quota reductions.
These measures are complemented by digital supervision through Minerba One, which is integrated with the interministerial Mineral and Coal Information System (SIMBARA) to strengthen monitoring and governance across mining operations.
“The main message to investors is that Indonesia continues to improve its investment climate while maintaining responsible management of national resources,” Yan said.
Meanwhile, Eul Roh, Manager of the International Cooperation Team at the Critical Mineral Department of Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), said stronger mineral cooperation between Indonesia and South Korea would require greater regulatory certainty alongside improvements in environmental standards and access to global battery markets.
He highlighted the complementary strengths of Indonesia’s mineral resources and processing capacity and South Korea’s battery technology, recycling expertise and financing networks.
“No single company can solve this alone. Both countries must address it together,” Eul said.