Ministry of Energy and Mineral Resources Projects Copper Prices to Rise Until 2032
Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) projects that copper prices will rise until 2032, driven by an imbalance between supply and demand.
“Until 2032, the supply of copper compared to demand will become imbalanced, so prices will certainly rise,” said the Director General of Minerals and Coal (Dirjen Minerba) of the Ministry of ESDM, Tri Winarno, at an event titled “Unlocking Growth in The Middle Income Trap” in Jakarta on Tuesday.
Based on data from the London Metal Exchange, copper prices in 2022 ranged from 7,000 to around 8,000 US dollars per tonne. These prices are lower compared to copper prices in 2026, which reached levels of 13,000 US dollars per tonne in the January–February period.
Similar projections apply to other raw materials, so Tri views the mining industry as still having opportunities for development ahead, primarily through industrialisation.
On that occasion, Tri also reminded that countries that are currently advanced, such as G7 nations, utilised their demographic bonuses by pursuing industrialisation.
“Materials in the form of raw materials and others are still needed by countries around the world. Unless they use recycling, this industry (mining) will still be needed in the future,” said Tri.
The statement responds to concerns about deindustrialisation that could disrupt Indonesia’s downstreaming policies. Tri is optimistic that Indonesia still has opportunities ahead.
In addition to having raw materials, Tri also conveyed that the development of the quality of Indonesian human resources (HR) is a focus of the government to support industrialisation in Indonesia, so that Indonesia does not get trapped in the middle-income trap.
“Development for HR itself is already starting. It’s already beginning to develop,” said Tri.
It was previously reported that Deputy Chair of Commission VII of the Indonesian House of Representatives, Chusnunia Chalim, stated that the phenomenon of deindustrialisation is marked by declining industrial growth, layoffs, and import dependency, which could hinder economic growth.
Early deindustrialisation can hinder long-term economic growth because the productivity of the services sector is lower compared to manufacturing.
For that reason, she also suggested that the government strengthen policies related to vocational education and industrial job training.