ADVANCING INDONESIA’S ROLE IN THE GLOBAL COPPER SUPPLY CHAIN: DOWNSTREAM INTEGRATION, PRODUCTION CAPACITY EXPANSION, AND ENERGY TRANSITION IMPLICATIONS
DOI:
https://doi.org/10.55960/jgf.v9i1.294Keywords:
copper industry, downstream policy, electric vehicles, mineral supply chain, renewable energyAbstract
Copper remains to be the critical subject in the global economy, underpinning renewable energy technologies, electric vehicles, and broader carbon reduction strategies. Urbanisation, technological advances, and a transition towards lower carbon energy systems are the primary sources of the ongoing rise in demand for copper. By undertaking a qualitative content analysis of policy documents, capacity expansion plans and production data, this paper seeks to explore the role of Indonesia in the global copper market. Indonesia possesses substantial copper reserves and has advanced down streaming policy through the construction of the world’s largest single-line copper smelter in Gresik, East Java. Teaming up with the existing PT Smelting plant, the new facility includes mining and smelting operations and is responsible for around 800,000 tonnes of copper cathodes annually, capable of supporting the production of electric vehicles and renewable energy sources worldwide. When it comes to full production at the end of 2025, Indonesia will become one of the top five producers in the world with an annual production of 1.1 million tonnes. These developments are contributing to Indonesia’s status as an important player in the international energy transition and are also expanding the country’s engineering capacity.
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