JAKARTA — Indonesian President Prabowo Subianto said on Saturday that the state should secure a greater share of the benefits from all mining permits in Indonesia, and that, if necessary, the state should hold controlling stakes in mining assets.

Source: Reuters

“From now on, all mining permits, at least 70% must benefit the state. If necessary, the shares should be state-controlled,” Prabowo said in a speech to members of Muhammadiyah, one of Indonesia's largest Islamic organisations, Reuters reported from Jakarta on Saturday, November 14.

A statement from the presidential palace clarified what the president's figure means: the 70% he stipulated refers to the proceeds from the management of mining permits — that is, at least 70% of the proceeds generated under a mining permit should flow to the state, rather than the state automatically taking a 70% shareholding in every mine.

Prabowo added in his speech that Indonesia remains open to investors in the mining sector, but “the profits must predominantly go to the Indonesian people” — framing the policy as a question of who benefits from the country's natural wealth, not as a closure to foreign capital.

Why it matters beyond Indonesia

Indonesia is one of the world's most important mining countries: it is the world's largest producer of nickel, a metal central to electric-vehicle batteries and stainless steel, and a major supplier of tin, bauxite and copper. Any move that raises the state's take from mining permits — or that puts state control of mining assets on the table — will be read closely by the global mining companies, battery makers and commodity traders who depend on Indonesian supply.

Resource nationalism of this kind has been spreading across mineral-rich countries, as governments argue that the profits from critical minerals should stay at home. For investors, the open questions are practical ones: whether the 70% proceeds rule will be written into new permits only or applied to existing ones, how it will be calculated, and whether any move toward state controlling stakes would be negotiated purchase or imposed.

What happens next

Saturday's remarks were a presidential direction, not yet a published regulation: no implementing rules accompanied the speech, and the palace statement was a clarification of intent rather than a legal text. Mining companies and investors will be watching Indonesia's energy and mineral resources ministry for the formal rules that turn the 70% figure into permit conditions — and for the market reaction when Indonesian markets reopen.