Indonesia’s contribution in renewables through Rare Earth Metals

The increasing of technological advances, the needs of each country are increasing. The discovery of innovations, the production of goods that are increasing, and renewing energy in a country. It causes countries to desperately need an adequate supply of energy to meet these needs. Energy especially mineral is important in the manufacture of raw materials for an electronic product or can be used as a raw material for realizing renewable energy. Entering the Covid-19 Pandemic, the demand for electronic goods is increasing because, amid a pandemic, people spend more time at home and use digital goods in conducting transactions, using electronic devices, both those used in households such as televisions, refrigerators, induction cookers, washing machines as well as those things we use every day, such as cellphones, laptops and other electronic devices that can accompany people’s daily activities during the pandemic. Besides being able to be used as raw material for making electronic goods, energy, especially Mineral Resources, it can also contribute to realizing the renewable energy in the world, which is the increasing greenhouse gas emissions which will have an impact on the environment and will worsen the environmental, social conditions and Worsening human health is caused by CO2 gas released into the air. Based on data from the World Meteorological Organization (WMO) explained that the concentration of greenhouse gas emissions in the atmosphere increased and reached a record high last year. Therefore, the supply of Mineral Resources is important in a country to meet human needs and realize renewable energy in the future. The Geological Agency of the Indonesian Ministry of Energy and Mineral Resources revealed that Rare Earth Metals were found in a Lapindo mud located in Sidoarjo, East Java, Indonesia. (Murdaningsih, 2021) Rare Earth Metal is one of the minerals that have very important content to be used as raw materials for the manufacture of electronic goods, electric vehicles, and as an energy that can be used as a source of realizing renewable energy. Currently, the world’s largest reserves of Rare Earth Metals are in China, which is the main producer of Rare Earth Metals in the world followed by the United States, Australia, and India (Potential of Rare Earth Metals in Indonesia, 2019). The discovery of rare earth metals in Indonesia can be maximized by Indonesia to take advantage of this invention. Maximizing a Rare Earth Metal can be done to meet the needs of society, especially to meet the supply of electronic goods in a country, and participate in producing Rare Earth Metals in the world to maximize international cooperation both in terms of cooperation to meet electronic products, as well as mutual fulfillment the need to work together in realizing the renewable energy in the world.

Based on data from the Indonesian Central Statistics Agency, it explains that China is still becoming the biggest partner to export telecommunication equipment to Indonesia with an amount of US$ 5,002.8 in 2020 (Central Bureau of Statistics, 2021). Not only telecommunications equipment, but Indonesia is also imports machinery for industrial purposes as much as 757.1 tons (Central Bureau of Statistics, 2021). Therefore, this data shows that Indonesia is still completely dependent on China in importing electronic products as well as products for industrial purposes. To minimize this dependence, Rare Earth Metals can be used as a strategy by Indonesia to participate in producing local electronic goods, as well as a reserve energy source in a country. Indonesia can maximize its diplomatic strategy to cooperate with other countries, such as opening a raw material processing industry by bringing in technologies from other countries to manage raw materials to semi-finished materials or finished products. this strategy can be used by Indonesia to maximize its resources and improve Indonesia’s performance so that it is better in the future and can produce its products without having to import from other countries. Electronic devices will always be updated for the sake of updating to be able to keep up with the growing era of globalization. This causes the technology industry market to become one of the most influential for the economy of a country. The electronics industry facing an increase in raw material prices which causes pressure on prices for finished products to also increase. Secretary-General of the Association of Electronic Entrepreneurs (Gabel) Daniel Suhardiman, said that the increase in raw material prices is continuing to soar due to the scarcity of chip or semiconductor components due to the high demand for the technology industry (Ayu, 2021). The high level of use of electronic devices in daily life will have an impact on the high market demand for the technology industry, so the technology industry must be very careful in dealing with the supply of raw materials.

In addition to Rare Earth Metals which have the potential to meet the supply of raw materials for the manufacture of electronic goods, on the other hand, Rare Earth Metals greatly contribute to assisting in implementing renewable energy in the future. Which is realizing renewable energy in a country is increasingly being carried out by the world caused by increasing greenhouse gas emissions that have an impact on the environment. Based on data from the World Meteorological Organization (WMO) explained that the concentration of greenhouse gases reached a new high. which has levels of carbon dioxide (CO2) released into the air as much as 413.2 parts per million (ppm), methane (CH4) at 1,889 parts per billion (ppb)) and nitrous oxide (N2O) at 333.2 ppb and the increase has continued in 2021 (World Meteorological Organization, 2021). Rare Earth Metals contain minerals in the form of Monazite, Xenotime, and Zircon (Alkalis, 2021). Where these mineral sources can contribute to realizing renewable energy in developing electric vehicles because Rare Earth Metals can also be used as the main raw material for making electric vehicle batteries. The discovery of Rare Earth Metals in Indonesia can also be an opportunity for Indonesia to contribute to realizing a balance in the supply of electronic goods in the world and contribute to realizing the world’s renewable energy in the future.

Ramadhan Dwi Saputra
Ramadhan Dwi Saputra
Research Assistant at Universitas Islam indonesia