Trump Eyes Indonesia's High-Quality Copper as Trade Deal Lowers Tariffs to 19%
United States President Donald Trump has openly expressed his interest in several of Indonesia's valuable mineral commodities, including high-quality copper. Trump recently announced an import tariff of 19%, lower than the previous rate of 32%, based on direct negotiations with Indonesian President Prabowo Subianto.
Trump stated that the tariff reduction to 19% was part of a trade agreement under which the US would not pay any import tariffs to Indonesia.
In response, the government through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), together with related institutions, is working to ensure that copper products sold to the United States are the result of value-added processing or downstreaming carried out domestically.
"Together, we are formulating policies that are pro-downstreaming. So, there will be no exports in raw form," said Rizwan Aryadi Ramdhan, Director of Mineral and Coal Downstreaming at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday (16 July 2025).
Rizwan explained that the export of copper concentrate has already been banned by the government, and his office is therefore encouraging downstreaming processes to be carried out domestically.
"We support the production processing facilities being located domestically," he affirmed.
Copper downstreaming continues to receive attention as it represents a strategic step in strengthening the national industrial ecosystem. The accelerated construction of PT Freeport Indonesia's smelter in Gresik, a member of the MIND ID Group, is regarded as part of a major effort to increase the added value of domestic mineral resources.
Trump stated that the tariff reduction to 19% was part of a trade agreement under which the US would not pay any import tariffs to Indonesia.
In response, the government through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), together with related institutions, is working to ensure that copper products sold to the United States are the result of value-added processing or downstreaming carried out domestically.
"Together, we are formulating policies that are pro-downstreaming. So, there will be no exports in raw form," said Rizwan Aryadi Ramdhan, Director of Mineral and Coal Downstreaming at the Ministry of Investment and Downstreaming/BKPM, in Jakarta on Wednesday (16 July 2025).
Rizwan explained that the export of copper concentrate has already been banned by the government, and his office is therefore encouraging downstreaming processes to be carried out domestically.
"We support the production processing facilities being located domestically," he affirmed.
Copper downstreaming continues to receive attention as it represents a strategic step in strengthening the national industrial ecosystem. The accelerated construction of PT Freeport Indonesia's smelter in Gresik, a member of the MIND ID Group, is regarded as part of a major effort to increase the added value of domestic mineral resources.