ASIATODAY.ID, JAKARTA – The Indonesian government led by Prabowo Subianto has begun to move to accelerate the downstreaming of the copper and tin industry.
The copper and tin sector has an important role in supporting downstream industries, such as automotive, electronics, electrical equipment and renewable energy.
“Indonesia has large copper reserves, around 28 million tons, making us the country with the seventh largest copper reserves in the world. “On the other hand, Indonesia is also the second largest tin producer in the world, with a contribution of 14 percent to total global production,” said the Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry of the Indonesian Ministry of Industry, Setia Diarta, in a statement in Jakarta, quoted on Thursday. October 31, 2024.
According to him, this huge potential needs to continue to be optimized in order to provide higher added value to the national economy. Therefore, the Directorate of Metal Industry is holding the Copper and Tin Industry Forum 2024 in Jakarta, Tuesday, October 29. This activity was attended by stakeholders from the copper and tin industry sector, including government representatives, industry associations, business actors and academics.
“It is hoped that this forum can become a forum for discussion and collaboration to optimize the use of copper and tin resources in Indonesia and strengthen the downstream sector so that it is more competitive in the global market,” said Setia.
Apart from that, the 2024 Copper and Tin Industry Forum is also an opportunity for producers of copper and tin raw materials to meet with user industries, such as the electrical cable, electrical equipment and automotive industries.
“By bringing these sectors together, it is hoped that optimal synergy will be formed to strengthen the national supply chain, as well as opening up investment and collaboration opportunities,” he added.
One of the main challenges in the copper and tin industry is reducing dependence on exports of raw materials. Currently, most of Indonesia’s copper is exported in concentrate form with low added value.
However, starting January 1 2025 exports of copper concentrate and anode mud will be prohibited. This is an effort to continue to encourage further downstreaming. On the other hand, tin is still widely exported in the form of raw metal.
“Downstreaming must be the main focus to produce products with higher added value, such as copper cathodes, tin plates and other downstream products. “This will also strengthen Indonesia’s position as a major player in the international market,” he stressed.
The Ministry of Industry will soon establish a materials center for copper and tin. This raw materials center is expected to become a center for innovation and well-coordinated distribution of raw materials for the domestic copper and tin industry.
“This material center will support downstreaming, reduce dependence on imported raw materials, and strengthen supply chain efficiency so that it can encourage export growth of high added value products,” explained Setia.
Furthermore, in line with Indonesia’s commitment to achieving net zero emissions, the 2024 Copper and Tin Industry Forum also raised important topics regarding the application of circular economy and green industry principles in the copper and tin sector.
“Using recycled raw materials, energy efficiency and waste management are the main issues in achieving a sustainable industry,” said Director of the Metal Industry, Rizky Aditya Wijaya. (AT Network)
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