Restructuring Corporate Governance in the Critical Minerals Sector to Strengthen Indonesia's Economic Sovereignty in the Global Value Chain

Abstract

Changes in the global economic structure have placed critical minerals in a strategic position because they are needed in the development of electric vehicles, batteries, energy networks, low-carbon technologies, and various strategic industries. Indonesia holds a key position in the global value chain for critical minerals, particularly nickel. However, high mineral production in a country does not necessarily indicate that the country controls the economic value generated along the production chain. Differences between resource location, corporate ownership, technological mastery, financing, and market access indicate issues that cannot be resolved solely through mining or trade policies. This study analyzes the construction of corporate governance for critical minerals in Indonesian law, its role in strengthening the capture of Indonesia's economic value in global value chains, and the need for corporate governance reconstruction to strengthen economic sovereignty. The study uses a normative juridical method with legislative, conceptual, case, and comparative approaches. Primary legal materials consist of Indonesian laws and regulations, Constitutional Court decisions, World Trade Organization documents, and relevant international instruments. Secondary legal materials come from scientific literature and publications from the OECD, IEA, and UNCTAD. The research findings indicate that Indonesian law has provided the basis for state control over mineral resources, mining operations, investment, and corporate governance, but has not yet integrated the strategic character of critical minerals into a corporate governance framework that specifically addresses economic sovereignty. This research proposes the concept of Strategic Mineral Corporate Governance, which encompasses ownership transparency, strategic responsibility of corporate organs, supply chain risk management, due diligence, technology development, domestic value capture, sustainability, and accountability. This reconstruction is not directed at restricting foreign investment, but rather at establishing governance that can enhance domestic capacity and Indonesia's position in the global value chain while still adhering to international business law.