Investment Ministry Seeks to Expand Copper Downstream Industries Beyond First-Tier Processing
JAKARTA — The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated it is working to increase downstream investment in the copper sector to produce advanced products with higher added value.
BKPM Director of Mineral and Coal Downstreaming Rizwan Aryadi Ramdhan, speaking after the Indonesia Miner 2025 event in Jakarta on Tuesday, explained that copper downstreaming development in the country remains limited to tier one processing, such as that carried out by PT Freeport Indonesia, which has only progressed as far as producing copper cathode.
"We haven't reached other derivatives — copper foil, copper slab, and so on. Products applied in everyday life have even higher added value. That's what we want to pursue. What Freeport does is still what we call tier one. We want the next tier of derivatives, where there are still very few business players," he said.
According to him, tier one downstream products have typically been exported, even though processed copper could yield a diversification of applied goods with high commercial value. However, these products are largely utilised by other countries, ultimately making Indonesia an import destination for advanced-tier copper products.
"For example, they go to China or perhaps other countries to be processed for added value there. Once the products are ready for use in downstream or applied industries, they are imported back into Indonesia. That means the significant added value stays overseas. We end up being just a market again," he said.
He added that to attract investment domestically, the ministry has prepared various programmes, including tax holidays, tax allowances, and active overseas promotional efforts.
In the first quarter of 2025, BKPM recorded investment realisation of Rp465.2 trillion, or 24.4 per cent of the total annual investment target. This figure represented a 15.9 per cent increase year-on-year and a 2.7 per cent rise from the previous quarter. Of this total, foreign direct investment accounted for 49.5 per cent or Rp230.4 trillion, whilst domestic investment stood at 49.3 per cent or Rp229.3 trillion.
BKPM Director of Mineral and Coal Downstreaming Rizwan Aryadi Ramdhan, speaking after the Indonesia Miner 2025 event in Jakarta on Tuesday, explained that copper downstreaming development in the country remains limited to tier one processing, such as that carried out by PT Freeport Indonesia, which has only progressed as far as producing copper cathode.
"We haven't reached other derivatives — copper foil, copper slab, and so on. Products applied in everyday life have even higher added value. That's what we want to pursue. What Freeport does is still what we call tier one. We want the next tier of derivatives, where there are still very few business players," he said.
According to him, tier one downstream products have typically been exported, even though processed copper could yield a diversification of applied goods with high commercial value. However, these products are largely utilised by other countries, ultimately making Indonesia an import destination for advanced-tier copper products.
"For example, they go to China or perhaps other countries to be processed for added value there. Once the products are ready for use in downstream or applied industries, they are imported back into Indonesia. That means the significant added value stays overseas. We end up being just a market again," he said.
He added that to attract investment domestically, the ministry has prepared various programmes, including tax holidays, tax allowances, and active overseas promotional efforts.
In the first quarter of 2025, BKPM recorded investment realisation of Rp465.2 trillion, or 24.4 per cent of the total annual investment target. This figure represented a 15.9 per cent increase year-on-year and a 2.7 per cent rise from the previous quarter. Of this total, foreign direct investment accounted for 49.5 per cent or Rp230.4 trillion, whilst domestic investment stood at 49.3 per cent or Rp229.3 trillion.