Indonesian Copper and Mineral Sovereignty

JAKARTA – Indonesia enters a new chapter in mineral resource management. The challenge is not only to produce commodities, but ensure that the strategic mineral can become an industrial defense foundation, create added value, and strengthen national economic sovereignty.

One of the increasingly strategic mineral is copper. This mineral is an important material for various industries, from electrical, transmission lines, electronic, to electric vehicles and renewable energy. In line with the acceleration of global electrification and energy transition, the control of copper resources and supply chain is an important part of a country’s mineral security.

For Indonesia, the majority ownership through MIND ID at PT Freeport Indonesia (PTFI) is a strategic instrument to strengthen the national control of copper resources, while at the same time, ensure that the development provides bigger benefits for the domestic economy.

Such efforts do not stop at copper mining and refining activities. PTFI also develops the PT Freeport Indonesia Precious Metal Refinery (PMR) which refines anode slime, side product of copper concentrate refining, to become precious metal.

PMR has a production capacity of about 50 tons of gold and 200 tons of silver per year. The presence of this facility expands the mineral value chain in Indonesia, and at the same time, opens bigger opportunities for the utilization of processed products in the domestic market.

The benefits of such integration began to be seen in February 2025 when PTFI sent 125 kilograms of 99.99% concentrate gold bars produced by PMR to PT Aneka Tambang Tbk (ANTAM), with a value of about Rp207 billion. Previously, PTFI and ANTAM had also agreed on the purchase of up to 30 tons of gold per annum.

MIND ID Division Head of Institutional Relations, Selly Adriatika, said that such integration is part of MIND ID’s strategy in building mineral value chain which supports one another among Holding Members.

“MIND ID does not see each asset and company as entities that stand on its own. We integrated resources and capabilities of Holding Members to support one another, so that mineral processing results can be continuously developed to become part of the national industrial supply chain and provide added value domestically.”

PTFI and ANTAM integration also has relevancy with the domestic market needs. Data from the World Gold Council shows that demand for gold bars and coins in Indonesia reached 31.6 tons in 2025, while gold consumption for jewelry reached 16.6 tons. The total needs for the two segments reached about 48.2 tons, nearing the gold production capacity of PMR PTFI.

According to Selly, the strengthening of the value chain becomes even more important in line with the rising needs of the strategic mineral. That is why, development of PTFI is not only directed to raising production, but also strengthening the connections between mining, processing, refining, and the domestic downstream industry.

Hastening the production recovery of Grasberg and optimization of Gresik PTFI Smelter have strategic meaning in the context. Both not only determine copper production capacity, but also expand the potential of associated minerals and derivative products to be processed and provide added value in Indonesia.

“What MIND ID is doing today is part of the journey to build a sovereign mining industry, in which the natural resources we own can be managed and developed maximally for the interests of the nation. Indonesian resources have to be a power for generations today, while at the same time, a foundation for future generations.”

With the control of strategic assets, downstreaming, and integration between Holding Members, MIND ID continues to ensure Indonesian minerals not only stop at being commodities, but develop to become industrial strength and source of national economic growth.