Indonesia's Resource Deep Processing Strategy Reshapes Economic Territory: Opportunities and Challenges Coexist

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Indonesia through the mineral deep processing strategy to enhance the added value of resources, copper aluminum silicon industry chain is beginning to bear fruit, but facing infrastructure technology bottlenecks, the government is taking multiple measures to promote sustainable transformation.

, Indonesia is reconstructing the national economic pattern through the strategy of systematic deep processing of resources. This industrial upgrading plan, which started in the mineral field, has achieved initial results. Data as of 2024 show that the deep processing system for the three strategic minerals of copper, bauxite and silica sand has not only freed Indonesia from its traditional position as a raw material exporter, but also spawned high value-added industrial chains such as copper cathodes, alumina and silica-based materials, becoming a model for the transformation of Southeast Asian economies.

At the Gresk smelter in Sulawesi in

, PT Freeport Indonesia realized the first in-situ conversion of copper concentrate, marking a new stage in the country's mineral development. This "mine is factory" model has been promoted in many provinces, driving the average annual GDP growth of more than 8%, creating more than 50000 skilled jobs. The silica sand refining base in East Java has established a direct supply system with global photovoltaic giants, increasing the added value of raw materials by US $300 per ton.

Behind the dividends brought by

industrial upgrading, deep-seated contradictions are gradually emerging. The old infrastructure network in the mining area is difficult to support the demand for precision machining, the shortage of skilled workers is 30000, and the fluctuation of non-ferrous metal prices in the international market has led to the idle capacity of some factories. The environmental pressure is also severe, and the cost of red mud treatment from bauxite extraction has accounted for 15% of the total project budget.

In order to solve the development dilemma, the Indonesian government launched the "Resource Future Plan", built a collaborative system of industry-university-research to train professionals, and set up a special fund of 500 billion shield to support the research and development of cleaner production technology. Through the establishment of joint ventures with international mining enterprises, the introduction of German digital mine management system, and promote the establishment of regional mineral exchanges to balance supply and demand. Economists predict that if the strategy is implemented, Indonesia is expected to increase the contribution rate of the mining economy from the current 12% to 18% by 2030.

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