Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that there will be two copper derivative industries built in the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone. He conveyed this when giving a report to President Prabowo Subianto at the inauguration of the gold refining facility or precious metal refinery (PMR) owned by PT Freeport Indonesia (PTFI) in Gresik, Monday (17/3/2025).According to Bahlil, the construction of the two factories is inseparable from the presence of PTFI's copper smelter in the same location. In the future, the factory will absorb copper cathode products from the Freeport smelter ."There are two [factories] that we will build, Mr. President. Freeport is in Gresik, here. The total investment is approximately IDR 6 trillion to IDR 7 trillion," said Bahlil.Bahlil also said that the factory will process copper cathodes into copper foil to cables. That way, copper downstreaming can run optimally in the JIIPE Special Economic Zone."And it utilizes the copper raw materials available here. So that we really reach the downstream level. That is under the direction of the President," said Bahlil.Meanwhile, PTFI's smelter was inaugurated in September 2024. The copper refining facility has started the commissioning phase in June 2024 and initial production in August 2024.The world's largest  single -line copper smelter is capable of refining copper concentrate with an input capacity of 1.7 million tons of concentrate and producing 600,000-700,000 copper cathodes per year.Based on Bisnis records , the cumulative investment value for the project occupying 100 hectares of land in the JIIPE Special Economic Zone has reached USD 3.7 billion or around IDR 58 trillion. 

President Prabowo Subianto has announced that the Merah Putih Cabinet has agreed to increase the number of first-phase downstream projects from 21 to 30. These large-scale industrialization projects are expected to create 8 million jobs."We have decided to start this year with nearly 30 major projects. Initially, we planned for 20 or 21, but after reviewing our capacity, we see the potential to reach almost 30 significant projects," Prabowo stated during the inauguration of PT Freeport Indonesia’s gold smelter in Gresik, East Java, on Monday (March 17, 2025).He emphasized that the government is not only focusing on downstream projects but also on strategic upstream initiatives. Key sectors targeted include agriculture and fisheries."These projects will generate substantial foreign exchange while also creating a significant number of jobs. Based on our investment programs starting this year, we estimate that around 8 million jobs will be created," he said.Prabowo is optimistic that these projects will become a driving force for Indonesia’s future economy. He urged all stakeholders to manage Indonesia’s natural resources responsibly."It is now our duty and responsibility to manage these resources properly—with order, good governance, transparency, and full accountability," he added.Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia previously revealed that the government had agreed on 21 first-phase downstream projects, with a total investment of USD 40 billion (approximately IDR 659.2 trillion). The funding will be provided by the Investment Management Agency, Daya Anagata Nusantara (BPI Danantara).According to Bahlil, these projects cover various strategic sectors, including oil and gas, mining, agriculture, and marine industries."For 2025, we initially planned around 21 projects in the first phase, with a total investment of approximately USD 40 billion. We have conducted detailed discussions, including identifying the specific investment projects to be developed," Bahlil stated in early March.The government has mapped out 28 commodities for industrial downstream development, aiming to attract investment worth USD 618.1 billion (approximately IDR 9.79 quadrillion) by 2040. Over the next five years, the focus will be on downstreaming coal, seaweed, and other key commodities.In addition to investment, the downstreaming of these 28 commodities is projected to generate USD 857.9 billion (approximately IDR 13.59 quadrillion) in export revenues, contribute USD 235.9 billion (approximately IDR 3.73 quadrillion) to the national GDP, and create 3.01 million jobs. If managed effectively, the government estimates that the potential economic impact could reach IDR 9,000 trillion.

PT Indika Energy Tbk (INDY) will invest USD 10 million in the initial public offering (IPO) of Nanshan Aluminium International Holdings Limited on the Hong Kong Stock Exchange (HKEX). According to a disclosure on Monday (March 17), Adi Pramono, the Corporate Secretary of INDY, stated that the investment will be made through PT Perkasa Investama Mineral (PIM), a subsidiary, as a cornerstone investor in Nanshan's IPO. 'The investment will be completed on the listing date, with the shares being delivered through the Hong Kong Central Clearing and Settlement System (CCASS), scheduled for March 25, 2025,' he said. The investment refers to a Cornerstone Investment Agreement between INDY as the investor; Nanshan as the IPO company; CMB International Capital Limited, a capital market intermediary, joint global coordinator, joint bookrunner, joint lead manager, and financial adviser; and Huatai Financial Holdings (Hong Kong) Limited, the sole sponsor and sole overall coordinator. According to him, this investment will enhance operational capabilities by diversifying the portfolio and expanding the company’s presence in international markets.

PT Alamtri Resources Indonesia Tbk (ADRO), formerly known as PT Adaro Energy Indonesia Tbk, has taken strategic steps in implementing Environmental, Social, and Governance (ESG) aspects through various programs and business innovations.In November 2024, ADRO officially changed its name to PT Alamtri Resources Indonesia Tbk. This name change reflects the company's commitment to focusing more on green business practices and environmentally friendly projects, supporting the national energy transition.The name Alamtri represents the management of Indonesia's natural resources through three key elements: land, water, and air, with a focus on responsibility and sustainable innovation.As part of its ESG strategy, Alamtri has diversified its business into the renewable energy sector. Ongoing projects include a 1.4 Gigawatt Hydroelectric Power Plant (PLTA) in North Kalimantan and a Solar Power Plant (PLTS) in Central Kalimantan.Alamtri has also established a business pillar, Adaro Green, to capture opportunities in the renewable energy sector. The company plans to utilize renewable energy sources such as solar, hydro, biomass, wind, and waste energy to reduce its carbon footprint.On the social aspect, the company has also strengthened its corporate social responsibility activities. Alamtri leveraged the momentum of the Ramadan month to run its goodwill programs.One of the activities carried out was a joint iftar (breaking of fast) event with 1,000 orphaned children from 20 orphanages spread across Jakarta, Depok, Tangerang, and Bekasi, held recently at the At-Thohir Mosque.Alamtri's President Director, Garibaldi Thohir, stated that this program is an annual routine activity that the company has been conducting since 2011. "For me, this is something extraordinary. Seeing them happy is very, very touching," he said in his statement on Saturday (March 15).During the event, the man commonly known as Boy Thohir reminisced about his father, Mochammad Thohir, who was an orphan at the age of 11 and a migrant from Lampung. Mochammad Thohir was a migrant from Lampung.As is known, ADRO recorded a revenue of USD 2.07 billion last year, slightly down from USD 2.13 billion in 2023. The company's revenue last year was still predominantly derived from coal sales. Coal sales to third parties amounted to USD 699.65 million, growing 16.63% year-on-year.

PT Bumi Resources Tbk (BUMI) welcomed the proposed adjustment to coal royalty fees put forward by the Ministry of Energy and Mineral Resources (ESDM).Ahmad Reza Widjaja, Vice President of Investor Relations and Chief Economist of Bumi Resources, stated that as the holder of a special mining business license (IUPK), the company stands to benefit from the revision of the royalty tariff.The company is now seeing a positive outcome with the potential reduction in the royalty tariff, after previously being subjected to the highest progressive royalty rate of 28%. He assured that the new regulation proposed by the Ministry of ESDM will not burden the company's operations."In principle, it will not overly burden the company's operations. Including for us at BUMI, we will benefit from the proposed new tariff. BUMI, which has been paying the highest royalty tariff, will receive a significant adjustment," Reza said when contacted on Friday (March 14, 2025).According to him, the proposed revision of the coal royalty fee has been eagerly awaited, especially for companies holding the IUPK (Special Mining Business License) for the continuation of the Generation 1 Coal Contract of Work (PKP2B)."The proposal is good, this is what players in the field have been waiting for. It seems that the Palace also agrees. However, the Ministry of Finance has yet to give the green light," he said.Bumi Resources targets coal production of 80 million tons in 2025. The company’s coal production increased year-on-year, from 56.2 million tons during the nine-month period in 2023 to 57.3 million tons during the January-September 2024 period. By the end of 2024, the company’s coal production is targeted to reach between 76 and 78 million tons.Last week, the Ministry of Energy and Mineral Resources (ESDM) presented a proposal to adjust royalty tariffs for mining commodities. For coal, the royalty rate is proposed to increase by 1% for HBA ≥ USD 90, with a maximum tariff of 13.5%.The Ministry of ESDM detailed the proposed changes in the coal royalty rates based on the type of contract for the existing special mining business licenses (IUPK) 28%, as follows:Calorific value ≤ 4,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 5%. For HBA between USD 70 and USD 90, the royalty rate remains at 6%. For HBA ≥ USD 90, the royalty rate will increase from 8% to 9%.Calorific value > 4,200 – 5,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 7%. For HBA between USD 70 and USD 90, the royalty rate remains at 8.5%. For HBA ≥ USD 90, the royalty rate will increase from 10.5% to 11.5%.Calorific value ≥ 5,200: For HBA < USD 70/ton, the proposed royalty rate remains unchanged at 9.5%. For HBA between USD 70 and USD 90, the royalty rate remains at 11.5%. For HBA ≥ USD 90, the royalty rate remains at the maximum rate of 13.5%.

PT Freeport Indonesia (PTFI) has revealed that the construction of its latest underground mine at Grasberg, Papua, called Kucing Liar, will require a capital expenditure (capex) of approximately USD 500 million per year.PTFI's President Director, Tony Wenas, stated that the development is planned to take place over the next seven to eight years. This mine will become the fourth mine operated by PTFI in the Grasberg area, following the Grasberg Block Cave, Deep Mill Level Zone (DMLZ), and Big Gossan."The development of Kucing Liar will require a capex of around US$500 million per year. This will be for the next seven to eight years," said Tony during a hearing with the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (March 13, 2025).Tony explained that the production from Kucing Liar will replace the declining output from the DMLZ. This will help maintain a stable ore production of 240,000 tons per day.The Kucing Liar mine is expected to begin production in 2027, with a production potential of up to 7 billion tons of copper and 6 million ounces of gold per year until 2041.Currently, Freeport operates three mines: the Grasberg Block Cave, which produces about 140,000 tons of ore per day; the DMLZ, with about 70,000 tons per day; and Big Gossan, producing 7,000 tons per day.Previously, Freeport Indonesia's Vice President of Underground Engineering, Anton Priatna, emphasized that the company is continuing development to increase copper and gold production through the Kucing Liar underground mine."Kucing Liar will start mining in 2028. It is targeted to reach 90,000 tons per day," Anton explained when interviewed in Tembagapura, quoted on Thursday (December 11, 2024).Through this mine, Anton said, Freeport aims to achieve a concentrate ore production target of 220,000 to 230,000 tons per day."By 2029, production will increase through the Kucing Liar underground mine to 240,000 tons per day," he added.

PT Vale Indonesia Tbk. (INCO) stated that 2025 will be a crucial year for the company as it must complete three strategic projects. INCO's President Director, Febriany Eddy, mentioned that the completion of these projects includes a downstream processing plant."Our focus is on 2025. The years 2025 and 2026 are the most critical for PT Vale because we need to complete three strategic projects, which include the development of new mining operations in three provinces: Central Sulawesi, Southeast Sulawesi, and South Sulawesi, including the downstream plant," he said during a meeting with Commission VI at the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (March 13).She elaborated on the latest updates regarding the three projects. These projects involve the construction of HPAL (High Pressure Acid Leaching) plants for the processing and refining of nickel ore to extract nickel and cobalt.First, the project in Central Sulawesi has already been built, including several of its facilities. This project is designed to be a carbon-neutral or net-zero emissions plant."Two-thirds of the energy will come from waste heat recovery, a third from solar panels, and the last part will use biomass to replace high-carbon materials. So, the groundwork is already visible there," she explained.The mining aspect has reached 70%, with a target completion by the second quarter of this year. The plant itself is targeted to be completed by mid-2026.Next, the Pomalaa plant in Southeast Sulawesi is targeted to complete the mining project by the first quarter of 2026, with the plant also scheduled to be finished at the same time."The progress is quite promising. As you saw, the autoclave is already finished. We are now upgrading the port to bring the equipment into Indonesia as quickly as possible," she stated.This project is a collaboration with Ford Motor Company from the USA and Huayou Metal Cobalt.Finally, the Sorowako Limonite HPAL project in South Sulawesi is designed with carbon emissions starting at 7 tons per ton, with a capacity of 60,000 tons of nickel. The project is expected to be completed by 2027 and is currently in the environmental impact assessment (AMDAL) application stage."In summary, the Pomalaa and Morowali plants must be completed by 2026, while the Sorowako Limonite project will be finished in 2027. The total investment in new mining and plants, along with partners, is around USD 9 billion," she said.He added that these projects will create jobs for about 5,000 people, with the target to increase this number to 12,000 by the end of the year."This is an extraordinary focus for us because we are building three projects simultaneously," she concluded.

President Director of PT Bukit Asam Tbk. (PTBA), Arsal Ismail, targets the completion of the Tanjung Enim-Kramasan coal transportation development by Q3 2026. Arsal mentioned that the development of this coal transportation project is one of the company's priority programs this year. "This coal transportation will increase our production capacity to 20 million metric tons," said Arsal during a hearing with the House of Representatives' Commission VI in Jakarta on Thursday (March 13, 2025). Arsal hopes that through this transportation expansion, the company can increase its long-term coal production capacity."In its implementation, we are partnering with PT KAI and PT KALOG, and our target is to complete it no later than Q3/2026," he said. Previously, Mirae Asset Sekuritas analyst Rizkia Darmawan, in his research, explained that PTBA has allocated a capital expenditure (capex) of IDR 7 trillion, significantly higher than the five-year average capex of IDR 2.5 trillion.According to Darmawan, this capital expenditure (capex) will be focused on expanding the railway network and coal downstream projects. He stated that the downstream project involves converting coal into anode sheets for electric vehicles. With cash reserves estimated at IDR 5.7 trillion by the end of 2024, Darmawan forecasts that PTBA will face challenges in financing dividends and capex in 2025. These challenges can be overcome, provided PTBA's revenue exceeds expectations in Q4 2024, capex is scheduled gradually or optimized, or additional funding is secured through debt or retained earnings.

PT Hartadinata Abadi Tbk (HRTA), PT Emas Murni Abadi (EMA), and PT Gorontalo Minerals (GM) have signed an agreement regarding a collaboration on gold refining and buying and selling activities. The total precious metal that can be refined and purchased amounts to 5,711 kg per year (Term Sheet).HRTA's Corporate Secretary, Ong Deny, revealed that the purpose of this collaboration is to develop each party's business activities. "This collaboration is expected to strengthen our position in the precious metals market and boost operational performance," he said to the Indonesia Stock Exchange, quoted on Wednesday (March 12, 2025).Ong stated that this transaction is not a material transaction, and the reporting obligation for this transaction is in accordance with the provisions of Article 13 paragraph (1) of OJK Regulation No. 17/POJK.04/2020 dated April 20, 2020, concerning Material Transactions and Business Activity Changes.Regarding the relationship between the parties involved, he explained that there is an affiliate relationship between the company and EMA, as EMA is a subsidiary of the company. In this transaction, there is no conflict of interest because there is no difference between the company's economic interests and those of the company's directors, major shareholders, or controlling shareholders that could harm the company.On the other hand, there is no affiliate relationship or conflict of interest between the company and GM based on the prevailing capital market regulations. "This transaction is an exempt affiliate transaction, and the reporting obligation for this transaction is carried out in accordance with the provisions of Article 6 paragraph (1) letter b of OJK Regulation No. 42/POJK.04/2020 dated July 1, 2020, concerning Affiliate Transactions and Conflicts of Interest," he emphasized.

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, confirmed that the coal downstreaming project through gasification into dimethyl ether (DME) will not only be developed in South Sumatra but also in Kalimantan.According to him, this plan has been discussed with President Prabowo Subianto during a limited meeting on Monday (March 10, 2025), as a follow-up to last week’s discussion regarding the first stage of downstreaming, which will be funded by the Investment Management Agency (BPI Danantara).“We will also directly develop DME as a substitute for [LPG] imports. This will be done alongside downstreaming in the fisheries, forestry, and plantation sectors,” he said at the State Palace after the meeting on Monday evening.“The locations will be in Sumatra and Kalimantan. One of the options is like that. Once it’s finalized, I will announce it again.”Bahlil stated that the coal gasification project into DME will utilize technology transfer from the United States (US) and China. It is known that these are the only two countries that have proven capabilities in developing coal gasification technology into DME in the world.He added that the coal downstreaming project will be technically discussed in the near future, including evaluating the technology that will be used.The idea of gasifying coal into DME under President Joko Widodo's administration was initially entrusted to PT Bukit Asam (Persero) Tbk (PTBA), with investment support from Air Products & Chemicals Inc. (APCI) from the United States (US).The project was originally planned for 20 years at the Bukit Asam Coal-Based Industrial Estate (BACBIE) located at the coal mine mouth in Tanjung Enim, South Sumatra. BACBIE would be situated at the same location as the South Sumatra 8 Mine Mouth Power Plant (PLTU).With foreign investment from APCI, the project was initially expected to produce about 1.4 million tons of DME per year, utilizing 6 million tons of coal annually.However, in mid-2023, APCI withdrew from the project to focus on developing blue hydrogen projects in the US. This departure led to the suspension of the coal gasification project’s continuation until now.Wave of CriticismThe project has faced significant criticism from various parties, mainly because it was considered uneconomical if intended to substitute LPG imports, which cost around IDR 7 trillion per year.From the mining business sector, the Executive Director of the Indonesian Mining Association (IMA), Hendra Sinadia, had previously stated that coal gasification into DME is a very expensive project."To convert coal into gas, for example into DME, there is a technology for it. We don't have that technology. Even in the world, the technology is limited, which is why it’s expensive," Hendra said when interviewed recently.“This should be a consideration for the government. If coal processing is required for companies, it will not be economical.”Hendra believes that if the government forces coal gasification into DME as a mandatory program for coal companies, there is a possibility that the substitute product will end up being more expensive than LPG.As a result, this could be counterproductive to the government's goal of developing DME to reduce LPG import costs and subsidies."If they sell DME, which is supposed to replace LPG, how will the price of DME be set? It won’t be easy if the price isn’t economical. Why would anyone buy DME? They’d rather buy LPG. Why would anyone invest in it if the price isn’t attractive?" Hendra said.Furthermore, the President's Special Advisor on Energy, Purnomo Yusgiantoro, stated that the netback of DME, as the final product of coal downstreaming, cannot compete with LPG, which is imported and subsidized by the government.It’s important to note that netback value refers to the highest price that consumers or buyers are willing to pay for a particular energy source.This issue led to APCI's withdrawal from the coal downstreaming project into DME by Bukit Asam, which left the LPG substitution mega-project stalled."There was a study as to why APCI pulled out from South Sumatra. They calculated the netback and found it couldn’t compete [with imported LPG]. Unless the coal price is US$15/ton. If it's US$15, then it's compatible with the price of LPG," Purnomo said during the Energy Transition Policy Review and Economic Growth Targets for the New Government event at the end of October.Purnomo emphasized that the comparison between LPG and DME—supposedly a replacement for LPG—was not at the same level or "apples to apples."National Economic LossFrom the economist’s perspective, the Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, claimed—based on his institution's research—that the country could lose royal income amounting to Rp33.8 trillion per year if the coal gasification into DME project is pushed forward."What will be the result? The state stands to lose Rp33.8 trillion in royalty income per year. Why? Because coal downstreaming is given a 0% royalty incentive under the Omnibus Law [Cipta Kerja]," he said last weekend.Bhima believes that if Indonesia continues to push for the coal DME project, which is economically expensive and requires substantial investment, in the end, the government will likely have to provide fiscal incentives for companies investing in this project."The incentive would be a 0% royalty. That means a loss of Rp33.8 trillion per year in estimated revenue," he concluded.He also emphasized that coal downstreaming should not burden the state's finances with additional gas subsidy costs for the gasification process into DME.“The projects being funded should not result in additional burdens on the state budget, such as in the form of gas subsidies for the coal gasification [DME] project,” he said.In addition, he pointed out that the nature of coal mining in Indonesia, which is dominated by open-pit mining, is not suitable for gasification projects, which are considered more appropriate for closed-pit or underground mining.Meanwhile, Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno also urged the government to reconsider the prioritization of the coal downstreaming project, particularly coal gasification into DME, as the project faced challenges due to its perceived lack of economic feasibility in the previous administration.“Going forward, policymakers need to conduct further studies to ensure that the economics of DME products are cheaper than LPG. This review is essential to ensure that the coal downstreaming policy can reduce imports and strengthen national energy resilience,” said Eddy in his statement, quoted on Monday (March 10, 2025).In line with Purnomo's view, Eddy mentioned that if LPG imports are still cheaper than DME production, the government should consider increasing domestic LPG production capacity rather than building DME production facilities.“At least, this would significantly reduce LPG imports, which would help preserve foreign exchange,” said the Member of Commission XII of the DPR.Eddy explained that during his tenure as the head of Commission VII (which is a partner of the Ministry of Energy and Mineral Resources) from 2019 to 2024, coal downstreaming into DME faced a major challenge: the economic feasibility of the final product.The raw material used for DME production is coal with good calorific value, which leads to high production costs.“Because the coal feedstock used has a calorific value of 4,000–4,200 kcal, the raw material costs are relatively high. Therefore, when going through the production process into DME, the final price becomes expensive and even, in our calculations, it could be more expensive than importing LPG,” he explained.“The goal of producing DME is actually to substitute LPG use.”Eddy stressed that the economic challenges at the time caused the coal downstreaming policy to stall, ultimately leading two state-owned enterprises and one private company to withdraw from the project.“These economic challenges led two of our state-owned enterprises and one private national coal company to cancel their investment in the project with Air Products from the US, which is an expert in the coal downstreaming process,” said Eddy.