Jakarta – The Indonesian copper industry is currently entering a more advanced era of transformation, where downstreaming plays a central role in increasing added value and attracting strategic investment.
This downstreaming process also goes hand in hand with efforts to realize the vision of a more competitive Indonesia, in accordance with the principles of the ideals carried by the government and the industrial sector in encouraging economic sustainability and community welfare.
Ahmad Heri Firdaus, a researcher from the Institute for Development of Economics and Finance (INDEF), assessed that copper downstreaming has great potential in supporting national energy and industrial resilience.
However, according to him, the competitiveness of downstream products will be stronger if supported by adequate infrastructure, conducive regulations, and stable energy availability.
The steps that have been taken by industry players, including MIND ID, are quite strategic in supporting downstreaming. However, in order for the competitiveness of downstream products to be optimal in the global market, support is needed from various sectors. For example, the development of basic infrastructure and better connectivity, he said.
Meanwhile, the General Chairperson of the Indonesian Mining Experts Association (Perhapi), Rizal Kasli, also highlighted the main challenges in downstreaming, namely building a downstream industry that is capable of producing end products.
According to him, the existence of Danantara as a newly formed Investment Management Agency (BPI) can be one solution in developing the downstream copper industry.
Danantara has been formed and MIND ID is part of it. The existence of the Investment Management Agency provides an opportunity to build a new company that specifically operates in the downstream sector to produce quality end products. This will greatly save the country’s foreign exchange, explained Rizal.
Increasing the upstream sector is also a crucial element in the copper industry ecosystem. According to data from the Geological Agency in 2023, Indonesia’s copper reserves decreased from 28 million tons in 2020 to 20.3 million tons, while total ore reserves were recorded at 3 billion tons.
Based on data from the Geological Agency, the distribution of copper resources is widely spread in Nusa Tenggara, Papua, Kalimantan, and Sumatra. Therefore, MIND ID needs to control the mining area to become a key player in the copper industry,” Rizal concluded.
Through the principle of asta cita, the downstreaming of the Indonesian copper industry is part of a collective effort to build an independent, prosperous, and sustainable country. With a commitment to unity, cooperation, and sustainability, Indonesia can optimize the potential of its natural resources and create a more advanced copper industry.
