Urban Mining and E-Waste Recycling in Indonesia: Unlocking Economic and Environmental Potential

Highlights

• Indonesia’s urban mining potential offers $4.8 billion in valuable metal recovery through advanced e-waste recycling techniques.
• Biohydrometallurgy emerges as a sustainable method for extracting metals from electronic waste.
• Strategic investment and regulatory support are crucial to transforming urban mining into a mainstream industry.

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A recent peer-reviewed study (opens in a new tab) by Mochamad Lutfi Firmansyah, Intan Nurul Rizki, and Nisar Ullah, published in Cleaner Waste Systems (March 2025), examines advancements in urban mining technology and its potential for electronic waste (e-waste) recycling in Indonesia. The authors argue that urban mining—recovering valuable metals from e-waste—offers a cost-effective and environmentally sustainable alternative to conventional mining, with the potential to cut production costs for certain metals by up to 13-fold.

So what did the authors find?

• Economic Potential: Indonesia could recover up to $4.8 billion in valuable metals by 2025 through e-waste recycling.
• Technological Advances: Biohydrometallurgy, which leverages microorganisms to extract metals, enhances sustainability in e-waste processing.
• Urbanization Synergy: Indonesia’s rapid urbanization fuels the growing supply of e-waste, positioning urban mining as a viable industry for rare earth and precious metal extraction.

But what about those challenges and constraints?

Despite its promise, urban mining in Indonesia faces significant barriers, including insufficient recycling infrastructure, lack of policy support, and inadequate investment in research and capacity building. The study emphasizes that comprehensive regulations, financial incentives, and technological advancements are necessary to scale urban mining into a mainstream industry.

Rare Earth Exchanges Takeaway

Urban mining represents a transformative opportunity for Indonesia—both economically and environmentally. However, unlocking its full potential requires strategic investment, regulatory support, and technological innovation. Without these measures, Indonesia risks falling behind in the global push for sustainable resource recovery.