Dok/Kemenperin

The Ministry Of Industry Is Pushing For The Processing Of Copper And Tin By Halting Raw Material Exports

Thursday, 31 Oct 2024

The Ministry of Industry is ramping up efforts to enhance the downstream processing and competitiveness of Indonesia's copper and tin industries. These sectors play a crucial role in supporting downstream industries like automotive, electronics, electrical equipment, and renewable energy.

"Indonesia has significant copper reserves, around 28 million tons, making us the seventh-largest copper reserve holder in the world. On the flip side, we are the second-largest tin producer globally, contributing 14 percent to the total world production," said Setia Diarta, the Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) at the Ministry of Industry, during a statement in Jakarta on Tuesday (October 29).

According to the Director General, this vast potential needs to be continuously optimized to add more value to the national economy. That's why the Metal Industry Directorate is hosting the Copper and Tin Industry Forum 2024 in Jakarta on Tuesday (October 29). The event brings together stakeholders from the copper and tin industries, including government representatives, industry associations, business players, and academics.

"This forum is expected to serve as a platform for discussion and collaboration to maximize the use of copper and tin resources in Indonesia and strengthen the downstream sector to be more competitive in the global market," Setia stated.

Additionally, the Copper and Tin Industry Forum 2024 provides an opportunity for raw material producers to connect with end-users in industries like electrical wiring, electrical equipment, and automotive. "By bringing these sectors together, we hope to create optimal synergy to strengthen the national supply chain while opening up investment and collaboration opportunities," he added.

The Director General of ILMATE pointed out that a major challenge in the copper and tin industry is reducing reliance on raw material exports. Currently, most of Indonesia's copper is exported as concentrate, which has low added value.

Starting January 1, 2025, the export of copper concentrate and anode sludge will be banned. This move aims to further promote downstream processing. On the other hand, tin is still largely exported in its raw metal form. "Downstream processing should be a top priority to produce higher value-added products, such as copper cathodes, tin plates, and other downstream products. This will also strengthen Indonesia's position as a key player in the international market," he emphasized.

The Director General added that the Ministry of Industry will establish a material center for copper and tin. This raw material hub is expected to be a center for innovation and well-coordinated distribution of raw materials for the domestic copper and tin industry. "This material center will support downstream processing, reduce dependence on raw material imports, and enhance supply chain efficiency, which can drive the growth of high-value-added product exports," Setia explained.

Additionally, in line with Indonesia's commitment to achieving net zero emissions, the Copper and Tin Industry Forum 2024 will also address important topics regarding the implementation of circular economy principles and green industry in the copper and tin sectors. "The use of recycled raw materials, energy efficiency, and waste management are key issues in achieving a sustainable industry," said the Director of Metal Industry, Rizky Aditya Wijaya.

The Ministry of Industry appreciates all forum participants who have actively engaged in constructive discussions. "We hope this forum can encourage tangible collaboration between producers and users of copper and tin raw materials, optimizing the use of local raw materials and enhancing the industries that utilize them."



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