Silica Sand Joins National Downstream Drive as Government Sets Roadmap

JAKARTA, Investortrust.id — Indonesia has positioned silica sand as a new strategic commodity in its national downstream program on Sunday, Dec 14, 2025 in Jakarta as the Ministry of Industry issued the 2025–2045 Silica Downstream Roadmap to strengthen domestic industry and support the government’s 8 percent economic growth target by 2029. The roadmap lays out integrated development from upstream mining to high value manufacturing with an expected long term impact on industrial competitiveness.

Industry Minister Agus Gumiwang Kartasasmita said the silica downstream strategy was aimed at reinforcing Indonesia’s industrial structure while maximizing the value of domestic natural resources. He added that the policy was designed to generate broad economic spillovers rather than short term gains.

“The development of silica downstreaming is not only to increase national economic value, but also to create other multiplier effects such as opening new jobs, stimulating investment, and supporting food and energy sovereignty and related sectors,” Agus said in an official statement.

Government optimism is supported by Indonesia’s large silica resource base. Data from the Ministry of Energy and Mineral Resources showed silica sand reserves of 7.8 billion tons, quartz stone reserves of 24.8 million tons, and quartzite resources of 1.65 billion tons, providing a foundation for long term downstream expansion.

Director General of Chemical, Pharmaceutical, and Textile Industries at the Ministry of Industry Taufiek Bawazier said silica processing could deliver extraordinary value creation. He noted that downstream processing could raise the value of solar grade silicon wafers by up to 1,300 times and by as much as 27 times when processed into electronic grade silicon wafers.

The roadmap was designed to reduce reliance on raw material exports through integrated upstream to downstream development through 2045. Initial stages focus on metallurgical grade silicon and polysilicon as core inputs for solar panel and semiconductor ecosystems.

The plan also targets the development of 10 supporting industrial estates and the application of green industry principles across 10 silica based manufacturers. Authorities said success would depend on raw material availability, sustainable energy supply, guaranteed offtakers, and supportive regulation, backed by coordination among ministries, Bank Indonesia, industry associations, and businesses.

Indonesia’s silica downstream roadmap directly benefits a company like PT Mitra Investindo Tbk (MITI) by providing long-term policy certainty, demand visibility, and clearer value-chain positioning. With the government prioritizing domestic solar panel and semiconductor ecosystems through 2045, MITI’s planned silica production gains a structurally stronger offtake outlook and higher value-added potential beyond raw material sales.

MITI is expanding into the silica sand business as part of its diversification strategy beyond logistics, positioning itself within Indonesia’s downstream industrial agenda. Through its indirect subsidiary PT Kendawangan Berkas Kersik, the company has secured an exploration permit in West Kalimantan and is advancing studies toward production targeted for late 2026.

The move allows MITI to tap into rising domestic demand for silica as a key input for photovoltaic modules and semiconductors, while creating a new growth engine with stronger long-term value creation compared with raw logistics services.