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Reach rich in the deep: securing deep seabed critical minerals resources
Visi Indonesia Emas 2045 or the Golden Indonesia 2045 Vision has set Indonesia’s target to attain high-income economy status by 2045. One of the key components of the Vision is by developing electronic vehicles (EV) and batteries industry. Indonesia has vast resources of critical minerals, particularly nickel, which is amongst the raw materials for EV and batteries. In the past decade, the country also witnesses a growing number of smelter construction to downstream those minerals, as well as boosting its manufacturing capacities.
Nevertheless, Indonesia faces a great challenge because its mineral reserves are set for total depletion in the upcoming decades. Eventually, all resource-rich States will face similar problem and will need to find alternative sources to continue production and to continue the path towards full decarbonization.
One of the options for Indonesia to secure critical minerals resources in the future is by resorting to the mineral deposit of the deep sea beyond national jurisdiction, also known as the International Seabed Area or “the Area”. The Polymetallic Nodules found on the Area contains nickel, cobalt, copper, and manganese, which are essentials for EV and batteries industry.
Under International Law, the mineral resources of the Area are the common heritage of mankind (CHM). Its utilization is administered by the International Seabed Authority (ISA), a treaty body created by the United Nations Convention on the Law of the Sea 1982 (UNCLOS). Any State who wishes to explore and exploit the mineral resources of the Area must obtained contract with the ISA. Such contract must be approved by the ISA Council.
The contract allocation in the Area is a first-come-first-serve basis. This stressed the urgency for Indonesia to submit a proposal to the ISA as early as possible to secure a contracting the areas with potentially greater deposit of minerals.
The Ministry of Foreign Affairs, as the forefront of Indonesia’s membership in the ISA, must strengthen its diplomacy and increase its capacity to engage within the ISA’s framework. With the upcoming membership of Indonesia in the ISA Council for 2024-2026, Indonesia must actively participate to protect its national interests. In the same time, Indonesia has to utilize this opportunity to monitor and safeguard its future contract submission to the ISA. Thus, the Ministry needs to 1) incorporate deep sea mining and ISA engagement as a priority in the Foreign Policy Grand Design; 2) create ISA Task Force; and 3) enhance administrative, budgetary and human resources support for deep sea mining and ISA related matters.
By reaching far beyond Indonesian waters, to the richness of the mineral resources of the deep sea, Indonesia will be able to secure its critical minerals need to achieve Visi Indonesia Emas 2045 and beyond.
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