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Behind every power cable, electric vehicle (EV) battery, and wind turbine lies one critical element: copper. This versatile metal is the backbone of modern electrification, enabling the transition to renewable energy and sustainable mobility. However, the world is facing a looming copper shortage. Global demand is projected to increase by more than 40% by 2040, yet production capacity is struggling to keep pace.
Meeting future demand will require over 80 new copper mines and more than $250billion in investments by 2030. The situation is further complicated by the fact that more than 70% of global copper refining is concentrated in countries such as China, Russia, and Iran. This concentration creates supply chain vulnerabilities, especially in an era marked by geopolitical uncertainty. In the first quarter of 2025 alone, copper prices surged past $9,000 per ton due to trade tensions and fears of supply disruption.
Environmental concerns are also reshaping the copper industry. Buyers are increasingly demanding cleaner production and more transparent supply chains, putting pressure on producers to adopt sustainable practices. In this shifting landscape, Indonesia is emerging as a key player.
With one of the world’s largest copper reserves—most notably the Grasberg mine—Indonesia is well-positioned to contribute significantly to global supply. The government’s active policies promoting mineral downstreaming are fostering the growth of domestic refining capacity, reducing reliance on foreign processing.
Industrial zones such as JIIPE (Java Integrated Industrial and Ports Estate) are playing a pivotal role in this transformation. Offering integrated infrastructure—ports, reliable energy, and tax incentives—these zones provide the ideal environment for large-scale copper processing and related industries.
Strategically located in the Indo-Pacific, Indonesia combines political stability, abundant natural resources, and a forward-looking industrial policy. This positions the country as the emerging epicenter for sustainable copper production in Asia.
In a fragmented global landscape, where security, supply reliability, and scalability are paramount, Indonesia offers exactly what the copper industry urgently needs. By investing in refining capacity, strengthening infrastructure, and promoting sustainable practices, Indonesia is not only securing its place in the global supply chain but also helping the world transition to a cleaner, more electrified future.