Indonesian Political, Business & Finance News

Integrated Copper and Gold Downstreaming Efforts Towards Industrial Independence

| | Source: REPUBLIKA Translated from Indonesian | Mining
Integrated Copper and Gold Downstreaming Efforts Towards Industrial Independence
Image: REPUBLIKA

Indonesia’s Mining Industry Holding MIND ID is promoting integrated copper and gold downstreaming as a strategic step towards national industrial independence. This effort focuses on strengthening the domestic supply chain while increasing the added value of minerals to support manufacturing.

The development of this integrated project is centred in JIIPE Gresik, designed as an industrial zone with multimodal connectivity and an integrated logistics ecosystem. This infrastructure is prepared to accelerate integration from upstream to downstream in the processing of copper and gold.

As an initial implementation, PT Freeport Indonesia supplies copper cathodes, which are then processed together with PT Pindad into brass mill products and brass cups with a capacity of 10,000 tonnes per year. This synergy is aimed at strengthening the defence industry supply chain, particularly ammunition components.

Downstreaming strengthening continues through plans to build facilities for copper rods and copper wire with a capacity of 300,000 tonnes per year, as well as copper pipes at 100,000 tonnes per year. This step is intended to meet the ongoing needs of the domestic manufacturing sector while reducing import dependency.

On the gold side, PT Aneka Tambang Tbk will build a precious metal production facility with a capacity of up to 30 tonnes per year, or about 5 million pieces. This production utilises anode slime from copper refining, thereby creating a more efficient integrated process.

President Prabowo Subianto views downstreaming as the key to facing global competition over natural resources. He emphasised the importance of mastering and processing resources domestically as the foundation of economic independence.

“We must be bold and capable of mastering our natural resource wealth. This is a form of the nation’s courage to master and process it in our own country. Downstreaming is the only way for us to become more prosperous,” said the President in his speech at the Groundbreaking of 13 National Downstreaming Projects Phase II in Cilacap, Central Java, on Wednesday (29/4/2026).

MIND ID’s Director of Downstreaming Strategy and Mineral Ecosystem, Tedy Badrujaman, explained that this development is part of the government’s mandate, aligned with the national industrialisation agenda. The project is also integrated into the large-scale downstreaming programme that strengthens the structure of strategic industries.

“This strategic step is part of the large series of the Hilirisasi Danantara Project, a programme that not only builds production capacity but comprehensively strengthens the foundation of the national strategic industry, from upstream to downstream, from raw materials to end products needed by the nation,” said Tedy.

With this integration, Indonesia is directed to have a more solid copper and gold supply chain. Strengthening the manufacturing sector is expected to have a sustainable impact on economic growth while accelerating the realisation of national industrial independence.

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