India’s Midwest Group, Indonesia’s Pertamina plan rare earth magnet plant

India’s Midwest Group and Indonesia’s state-owned Pertamina are planning to build a rare earth magnet manufacturing facility in Indonesia, involving technology transfer from India, Ambassador to Indonesia Sandeep Chakravorty said at a Ministry of External Affairs briefing on 7 July 2026. He was responding to a question from Reza of Nikkei Asia during the briefing, held during Prime Minister Narendra Modi’s state visit to Jakarta.

Chakravorty said the plan is to use heavy rare earths available in Indonesia, combined with technology developed in India, to manufacture rare earth magnets in Indonesia for the global market. He said a Pertamina delegation had recently visited India to see the country’s capabilities firsthand, describing the project as “a technology transfer-cum-co-design, co-built installation” that has already begun taking shape, though he said further contracts would determine its full scope.

Secretary (East) Rudrendra Tandon said critical minerals cooperation, including mining, had become an important part of the two countries’ comprehensive strategic partnership. He said India has strong demand and investment capacity in this area, while Indonesia holds considerable mineral resources, forming the basis for close economic collaboration. He added that specific commercial terms of such deals are typically finalized by companies rather than discussed at the leaders’ level.

The rare earths cooperation was one of several economic initiatives discussed during the visit, alongside plans to expand collaboration in pharmaceuticals, food processing and digital payment systems. Tandon said bilateral trade between India and Indonesia currently stands at around $25 billion, a figure he said does not reflect the scale of either economy.

The economic discussions took place alongside talks on defense industry collaboration, maritime cooperation and education partnerships, as part of what officials described as a broader effort to deepen the India-Indonesia comprehensive strategic partnership.