Copper Stocks: Business Opportunities, Challenges, and Key Listed Companies on the Exchange
In 2026, the copper commodity recorded an all-time high price of USD 13,000 per tonne. This serves as a signal that the commodity, often nicknamed ‘Dr. Copper’, is increasing in value alongside the growing needs of various manufacturing and infrastructure industries. Global demand for copper is expected to continue rising in the coming decade, driven by the acceleration of the energy transition and global digitalisation. With advancements in technology, the existence of electric vehicles (EVs) relies heavily on copper as a primary material.
Indonesia is one of the world’s top copper producers, currently holding the 7th position. Copper is the second-best electrical conductor after silver, but it is far more economical and industrially applicable. Its physical and chemical properties—specifically high electrical conductivity, corrosion resistance, and strong recyclability—make it the preferred choice for high-tech applications and industrial infrastructure. Key uses include electrical cables, energy transmission infrastructure, EVs, solar panels, wind turbines, data centres, electronic devices, and industrial cooling systems. According to International Energy Agency (IEA) data, global copper demand is projected to increase by approximately 30% by 2040 under current energy policy scenarios.
Several key drivers include:
The EV Infrastructure Boom: Electric vehicles require significantly more copper than conventional internal combustion engine vehicles, averaging 60-80 kg compared to just 20-25 kg. Additionally, charging stations and transmission networks drive massive demand.
AI and Data Centres: The growth of Artificial Intelligence increases the need for cabling, complex cooling systems, transformers, and electrical infrastructure. Australia’s BHP Group reported that copper-driven profits have risen, with copper production revenue surpassing iron ore for the first time due to AI demand.
Global Energy Transition: Solar and wind power systems require large volumes of copper. For instance, solar power systems require about 5 tonnes of copper per MW, while offshore wind turbines can use over 8 tonnes per MW.
Indonesia is becoming increasingly aggressive in promoting mineral downstreaming (hilirisasi). This process involves processing raw materials into higher-value finished products to enhance national industrial competitiveness and job creation. To optimise this strategy, mining companies are constructing copper cathode smelters capable of producing hundreds of thousands of tonnes annually, such as the PT Freeport Indonesia smelter in Gresik.
However, the sector faces significant challenges. The IEA predicts the copper market could face a 30% supply deficit by 2035. Furthermore, primary copper supply is not evenly distributed; production is concentrated in countries like Chile, Peru, China, and the Congo. Political conflicts, regulatory changes, or labour unrest in these regions could disrupt the global supply chain. Additionally, there are humanitarian concerns regarding mining practices in the Congo, where an estimated 40,000 children are reportedly forced to work in mines without protective equipment. Finally, the lengthy timeline required for developing new mining projects remains a hurdle for meeting future demand.