The Indonesian Mining Association (IMA) warns that surging copper demand driven by the global energy transition could lead to a global copper supply shortage by 2028. The association's chairman pointed out that Indonesia currently accounts for 3%-5% of global copper production, with potential to increase to 15% between 2032 and 2035, but the lag in refining industrialization may cause it to miss market opportunities.
Currently, Indonesia produces approximately 1 million tons of copper concentrate annually, of which only 200,000-250,000 tons are consumed domestically, with the remainder relying on exports. If all concentrate is exported without further processing, it will result in a loss of resource value. To address this challenge, Indonesia is promoting downstream industry development by banning the export of copper concentrate.
However, he called on the government to provide more incentive policies to accelerate the industrialization of copper products. He emphasized that the energy transition urgently demands key minerals like copper, and Indonesia must capitalize on its resource advantages, establish a clear refining direction, and optimize the investment environment to ensure that future copper production can serve domestic industries rather than merely relying on raw material exports.
The Indonesian Mining Association (IMA) warns that surging copper demand driven by the global energy transition could lead to a global copper supply shortage by 2028. The association's chairman pointed out that Indonesia currently accounts for 3%-5% of global copper production, with potential to increase to 15% between 2032 and 2035, but the lag in refining industrialization may cause it to miss market opportunities.
Currently, Indonesia produces approximately 1 million tons of copper concentrate annually, of which only 200,000-250,000 tons are consumed domestically, with the remainder relying on exports. If all concentrate is exported without further processing, it will result in a loss of resource value. To address this challenge, Indonesia is promoting downstream industry development by banning the export of copper concentrate.
However, he called on the government to provide more incentive policies to accelerate the industrialization of copper products. He emphasized that the energy transition urgently demands key minerals like copper, and Indonesia must capitalize on its resource advantages, establish a clear refining direction, and optimize the investment environment to ensure that future copper production can serve domestic industries rather than merely relying on raw material exports.