Systemic Feedback Mapping of Indonesia’s Rare Earth Element Sector: A Causal Loop Diagram Analysis

Rare Earth Elements (REE) are essential components for various strategic sectors, such as renewable energy, electronics, and high-tech manufacturing.Indonesia has abundant REE reserves and great potential to become a global supplier.However, the development of this sector is still hampered by complex and interrelated systemic challenges in various fields.This study aims to identify the main factors and interrelationships between factors that influence the development of the REE sector in Indonesia.By using a systems thinking approach and qualitative data from interviews with stakeholders, this study maps the dynamics of the problem through three Causal Loop Diagrams (CLDs).The first CLD shows how regulatory stagnation and unclear institutional roles reinforce governance fragmentation and hamper policy coordination.The second CLD illustrates the structural inconsistency between upstream exploration and downstream industry readiness that hinders value chain integration.The third CLD highlights the strengthening of external dependency, where weak domestic capacity drives dependence on foreign technology and markets, which ultimately threatens national resilience.These findings emphasize the importance of integrated interventions to encourage sustainable and sovereign REE sector development.