Promoting Self-Reliance in the Defence Industry: Copper Downstreaming Is the Key
Indonesia is one of the countries with the world’s largest copper reserves. However, it still imports ammunition raw materials from abroad.
This situation is now prompting a synergy between the mining sector and the defence industry to build end-to-end self-sufficiency. Data from the Ministry of Investment/BKPM places Indonesia seventh in global copper reserves and 11th in mine production. However, Indonesia’s downstream copper industry is only ranked 18th, behind Japan, India, Korea, and even Bulgaria, which has no copper mineral resources at all.
One strategic downstream product that has drawn attention is brass cups, a raw material for ammunition casings that had previously been imported.
Dave Laksono, Deputy Chairman of Commission I of the Indonesian House of Representatives, said that copper downstreaming holds a strategic position in supporting the independence of the national defence industry. Integrated copper processing, he said, can be used as raw material for the main weapon systems (Alutsista), ammunition, and even strategic defence technologies.
“With the integration between the mining sector and defence industry, Indonesia will not only reduce its dependence on imported raw materials, but also strengthen its position in safeguarding sovereignty and national security,” Dave said, as quoted.
The urgency of downstreaming is reflected in an upward import trend. According to data on Non-Oil and Gas Import Developments from the Ministry of Trade, the value of copper imports and downstream products grew by an average of 5.11% per year in the 2021-2025 period, from US$1.90 billion, rising cumulatively by 15.27%.
Dave Laksono is optimistic that downstreaming pursued consistently can build a more self-reliant and competitive defence ecosystem, in line with Indonesia’s independent foreign policy and its commitment to making the defence sector a pillar of national stability.
“The I Commission will continue to push for synergy between the government, state-owned enterprises (BUMN), and the private sector so that copper downstreaming truly yields tangible benefits for the national defence industry, while supporting sustainable development goals,” he added.
Mind ID’s Mining Industry Holding, through PT Freeport Indonesia, in cooperation with DEFEND ID’s Defence Industry Holding through PT Pindad, will produce brass cups in Gresik, with a capacity of 10,000 tonnes per year to meet domestic ammunition component needs.
Going forward, MIND ID also plans to develop downstream facilities to produce copper rods and copper wire with a capacity of 300,000 tonnes per year, and copper pipes with a capacity of 100,000 tonnes per year, all based on copper cathodes produced by Freeport Indonesia.
These copper downstream products can also serve as raw materials for various defence industries that are copper-intensive.
This step represents a tangible contribution by MIND ID, a state-owned company, in carrying out downstreaming to increase the domestic added value of mineral commodities.