Investment Ministry Seeks to Expand Copper Downstream Investment Beyond First-Tier Products
Jakarta (ANTARA) - 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.
Director of Mineral and Coal Downstreaming at BKPM, Rizwan Aryadi Ramdhan, speaking after the Indonesia Miner 2025 event in Jakarta on Tuesday, explained that copper downstreaming development in the country currently remains limited to tier one products, such as the copper cathode produced by PT Freeport Indonesia.
"We haven't yet reached other derivatives — copper foil, copper slab, and so on. Products applied in everyday life have even higher added value," he said.
"That's what we want to pursue. What Freeport does is still limited to what we call tier one. We want the next tier of derivatives, where there are still very few business players," he added.
According to him, tier one downstream products have typically been exported, despite the fact that copper products could be diversified into high-value applied goods. 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 for value-added processing there. Once they're ready for use in downstream or applied product industries, they're 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 promotional efforts abroad.
In the first quarter of 2025, BKPM recorded investment realisation of Rp465.2 trillion, or 24.4 per cent of total investment for the year. This figure represented a 15.9 per cent increase year-on-year and a 2.7 per cent rise from the previous quarter.
Investment was split between foreign direct investment (PMA) at 49.5 per cent or Rp230.4 trillion, and domestic investment (PMDN) at 49.3 per cent or Rp229.3 trillion.
Director of Mineral and Coal Downstreaming at BKPM, Rizwan Aryadi Ramdhan, speaking after the Indonesia Miner 2025 event in Jakarta on Tuesday, explained that copper downstreaming development in the country currently remains limited to tier one products, such as the copper cathode produced by PT Freeport Indonesia.
"We haven't yet reached other derivatives — copper foil, copper slab, and so on. Products applied in everyday life have even higher added value," he said.
"That's what we want to pursue. What Freeport does is still limited to what we call tier one. We want the next tier of derivatives, where there are still very few business players," he added.
According to him, tier one downstream products have typically been exported, despite the fact that copper products could be diversified into high-value applied goods. 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 for value-added processing there. Once they're ready for use in downstream or applied product industries, they're 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 promotional efforts abroad.
In the first quarter of 2025, BKPM recorded investment realisation of Rp465.2 trillion, or 24.4 per cent of total investment for the year. This figure represented a 15.9 per cent increase year-on-year and a 2.7 per cent rise from the previous quarter.
Investment was split between foreign direct investment (PMA) at 49.5 per cent or Rp230.4 trillion, and domestic investment (PMDN) at 49.3 per cent or Rp229.3 trillion.