Copper Mining in Indonesia: Background
1. A background on copper mining in Indonesia.
Indonesia holds a significant position in the global copper mining landscape, boasting substantial reserves and ranking among the top producers worldwide. This is largely driven by world-class operations such as the colossal Grasberg mine in Papua and the prominent Batu Hijau mine in West Nusa Tenggara. These major mines extract vast quantities of copper ore, often yielding valuable gold as a co-product, underpinning a considerable portion of the nation's mineral wealth and contributing significantly to its economy.
A key development transforming Indonesia's copper scene is the government's push for "downstreaming" – the domestic processing of raw minerals. This policy has spurred massive investments in new smelters. These cutting-edge facilities are designed to convert copper concentrate into higher-value copper cathode, with projections indicating a substantial increase in Indonesia's refined copper output, solidifying its ambition to become a major hub for processed copper and integrating more deeply into global supply chains driven by the increasing demand for green energy technologies.
The chart below compares Indonesia’s copper production and export volumes over recent years. It highlights the country’s strategic role in supplying global industries.
Production and export of copper in Indonesia.
No copper production and export data available.
💡 Fact: Indonesia ranks 10th globally in copper reserves (largest in Southeast Asia, 3% of global total), became the 5th largest copper producer worldwide in 2024, and is the 3rd largest copper ore exporter as of 2023. Key export markets include China, Japan, and South Korea. There are 4 major smelters in operation, including Freeport's Smelter Manyar.