The 4th DBS Metal and Mining Forum 2025: Navigating the Complex Transformation of Indonesia’s Mining Sector and the Energy Trilemma | Bahasa

Indonesia, 27 Nov 2025 - With abundant natural deposits of nickel, copper, and bauxite, Indonesia plays an important role in shaping future industries, from electric vehicles to low-carbon energy solutions. At the same time, geopolitical shifts and global market uncertainties have pushed the national mining sector into an increasingly complex phase of transformation. Responding to these developments, DBS Bank Ltd (DBS Bank) hosted The 4^th Metal and Mining Forum 2025: Forging Global Connections as a platform for industry leaders across the entire value chain, from upstream to downstream, to address critical sector challenges, regulatory developments, and emerging trends in the metals and minerals industry. The industry-focused gathering also opens avenues for expert insights exchanges from Asia region and attracts Foreign Direct Investment (FDI) into Indonesia.

The Indonesian government has designated 47 commodities as “critical minerals” due to their strategic importance for economic development and national defense. These commodities are vulnerable to supply disruptions and lack sufficient alternatives, yet they remain the backbone of global technological transformation and contribute around 10-11 percent of the national GDP. In this context, downstream processing becomes essential, with a strong focus on increasing the value added of nickel, copper, bauxite, and various other minerals.

“The global minerals industry is increasingly pressured by market fragmentation and shifting geoeconomic dynamics. Since 2024, trade barriers have hit critical minerals the hardest, particularly those with highly concentrated supply, exacerbated by the US imposing import tariffs on nickel, zinc, and cobalt, as well as China’s export restrictions on rare earth elements. These developments threaten the principle of the ‘single price law’ and widen price disparities across markets. Amid these shifts, the industry also faces the challenge of the energy trilemma: ensuring affordability, reliability, and sustainability at the same time to maintain energy stability,” said Managing Director, Global Head of Metals and Mining, DBS Bank Ltd Mike Zhang.

Despite challenging global conditions, metal demand remains strong across various commodities. Over the next decade, mining investment needs are projected to reach USD 3.5 trillion, with Latin America accounting for roughly one-quarter of total global capital expenditure. This spending will continue to be concentrated in copper (35%) and gold (17%), followed by coal (14%) and iron ore (12%), reflecting that the minerals sector remains attractive despite ongoing geopolitical pressures.

“Domestic industry sentiment continues to improve, supported by stronger demand and rising government spending. With the policy space still available to both the government and the central bank, economic growth is likely to remain stable. Moving forward, developments in domestic policy, particularly fiscal policy, will be an important catalyst for the market,” said Senior Economist DBS Bank Radhika Rao.

Foreign Investment Flows Strengthen, National Industry Development Prospects Brighten

In recent years, Indonesia has emerged as one of the main investment destinations for China and Hong Kong. Chinese investment, which reached only USD 0.6 billion in 2015, has surged to USD 8.1 billion in 2024. Cumulatively, investments inflowing from January 2019 to September 2024 reached USD 34.19 billion, or around 18 percent of Indonesia’s total FDI. This significant increase reflects the increasingly close economic ties between the two countries, with the metals and mining sector serving as the main driver behind this investment flow.

“The metals and minerals industry is entering a phase of transformation that demands resource efficiency, supply chain resilience, and the ability to read global market dynamics with far greater precision. In this context, businesses need a partner that not only understands the complexities of the industry but can also provide sharp and forward-looking insights. As a trusted partner in business growth, Bank DBS not only provides financing solutions but also delivers in-depth and relevant market analysis, enabling clients to make the right financial decisions while strengthening Indonesia’s position in the global market,” said Head of Institutional Banking Group PT Bank DBS Indonesia Anthonius Sehonamin.

With deep insights across 14 sectors, including metals and minerals, and experience in financing various strategic projects across the China–ASEAN corridor, Bank DBS Indonesia has a strong track record in supporting companies’ transformation at different stages of the value chain. This support is reinforced by digital solutions RAPID and IDEAL, which streamline treasury and trade processes, as well as a regional presence that connects Indonesia to flows of trade and investment.

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DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices, 1 Functional Office and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services that focus on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees, and the community towards a sustainable future. 

PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).

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With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.