Trump Shows Interest in Indonesian Copper as US Cuts Tariffs to 19 Per Cent
US President Donald Trump has shown interest in Indonesia's copper resources. This was evident when Trump announced a reduction in tariffs on Indonesian products entering the US from 32 per cent to 19 per cent on Tuesday (15/7/2025).
According to Trump, Indonesia is very strong in copper. However, he did not elaborate further on US plans regarding the exploitation of these natural resources.
Trump only stated that the tariff change came after the US reached a trade deal with Indonesia. Nevertheless, US products exported to Indonesia would not be subject to any tariffs, without specifying when this policy would take effect.
Trump also added that Indonesia would purchase energy products, agricultural goods, and aircraft from the US. Indonesia's total spending would reach 19.5 billion US dollars (approximately Rp 317 trillion).
"They will pay 19 per cent and we won't pay anything, we will have full access to Indonesia," Trump was quoted as saying by The Guardian on Tuesday (15/7/2025).
**Investment Ministry seeks to ensure copper sold through downstream processing**
In response to Trump's interest, the Ministry of Investment and Downstream Processing/Investment Coordinating Board (BKPM) is working to ensure that copper products sold to the US are the result of value-added processing or downstream industrialisation in Indonesia.
Director of Mineral and Coal Downstream Processing at the Ministry of Investment and Downstream Processing/BKPM, Rizwan Aryadi Ramdhan, said Indonesia needs to formulate policies that support downstream processing. This is because the government has already banned the export of concentrate, necessitating downstream processing within Indonesia.
"Together, we are formulating policies that are pro-downstream processing. So there will be no exports in raw form," Rizwan was quoted as saying by Antara on Wednesday (16/7/2025).
"We support the production processing facilities being located domestically," he added.
**Indonesia holds the world's seventh-largest copper reserves**
According to a Kontan report on Friday (11/7/2025), Indonesia is the country with the seventh-largest copper reserves in the world. Data published by the Indonesian Mining Association (IMA) shows that Indonesia's copper production is projected to reach 1.2 million to 1.4 million tonnes.
According to Trump, Indonesia is very strong in copper. However, he did not elaborate further on US plans regarding the exploitation of these natural resources.
Trump only stated that the tariff change came after the US reached a trade deal with Indonesia. Nevertheless, US products exported to Indonesia would not be subject to any tariffs, without specifying when this policy would take effect.
Trump also added that Indonesia would purchase energy products, agricultural goods, and aircraft from the US. Indonesia's total spending would reach 19.5 billion US dollars (approximately Rp 317 trillion).
"They will pay 19 per cent and we won't pay anything, we will have full access to Indonesia," Trump was quoted as saying by The Guardian on Tuesday (15/7/2025).
**Investment Ministry seeks to ensure copper sold through downstream processing**
In response to Trump's interest, the Ministry of Investment and Downstream Processing/Investment Coordinating Board (BKPM) is working to ensure that copper products sold to the US are the result of value-added processing or downstream industrialisation in Indonesia.
Director of Mineral and Coal Downstream Processing at the Ministry of Investment and Downstream Processing/BKPM, Rizwan Aryadi Ramdhan, said Indonesia needs to formulate policies that support downstream processing. This is because the government has already banned the export of concentrate, necessitating downstream processing within Indonesia.
"Together, we are formulating policies that are pro-downstream processing. So there will be no exports in raw form," Rizwan was quoted as saying by Antara on Wednesday (16/7/2025).
"We support the production processing facilities being located domestically," he added.
**Indonesia holds the world's seventh-largest copper reserves**
According to a Kontan report on Friday (11/7/2025), Indonesia is the country with the seventh-largest copper reserves in the world. Data published by the Indonesian Mining Association (IMA) shows that Indonesia's copper production is projected to reach 1.2 million to 1.4 million tonnes.