Director of Portfolio and Business Development at MIND ID, Dilo Seno Widagdo, mentioned that Spain expressed strong dissatisfaction following Indonesia's decision to halt copper concentrate exports.
The export ban on raw mineral commodities is part of Indonesia's policy on downstream processing to increase the added value of products.
“Usually, we export copper cathodes and copper concentrates to Japan and Spain. With the export halt, the Spanish side has started to express their frustration with us,” Dilo said during the *Strengthening SOEs Towards Golden Indonesia* event at Sarinah on Tuesday (15/10).
According to Dilo, Spain was upset with the export ban because it threatens the closure of their factories. However, Spain has since secured a new copper supplier.
“Their factory could be shut down, but now Spain is trying to source copper from Canada,” he added.
Currently, two companies are prohibited from exporting copper concentrate: PT Freeport Indonesia (PTFI) and PT Amman Mineral Internasional Tbk.
These copper concentrates will be processed domestically before being exported. The aim is to increase the value added to Indonesia’s export products.
“We already have two agreements for copper cathodes. Most recently, we signed an MoU with IBC to collaborate on building a copper foil manufacturing plant. The copper cathodes will be used to produce copper foil,” Dilo explained.
He estimated that the investment required for the copper foil plant could reach around USD 2 billion, with a production capacity of up to 300,000 tons of copper foil.
“About 300,000 tons, and the investment might be around USD 1.5 to 2 billion. Once the MoU is signed, they need certainty about the supply,” Dilo concluded.
