Indonesia has requested investment from the United States in its copper industry, signaling a strengthening of mineral cooperation between the two countries.
On Thursday, at the Indonesia Business Forum in Washington, D.C., the Bank of Indonesia (BI) called for American investors to contribute to the country’s copper processing industry, particularly in East Java. The Indonesian Ministry of Foreign Affairs, the Indonesian Investment Coordinating Board (BKPM), the Indonesian Embassy in the U.S., and the U.S.-ASEAN Business Council organized the event.
The Indonesia Business Forum has been ongoing for 75 years and is rooted in the strong diplomatic relationship between Indonesia and the United States. The event’s significance has increased significantly as the two nations elevated their partnership status to a Comprehensive Strategic Partnership (CSP).
During the event, the Bank of Indonesia requested investments from American investors in the copper processing industry in East Java. This industry is part of Indonesia’s downstream policy to enhance the added value of its copper resources.
Indonesia is currently attempting to weaponize its copper resources. Initially, the country planned to ban the export of copper concentrate (copper ore purified from impurities) by the end of this year. However, due to the lack of domestic smelting facilities, this export ban has been postponed until next year.
Nevertheless, Indonesia is exploring mineral cooperation with the United States. In July, José Fernandez, the U.S. Deputy Secretary of State for Economic Growth, Energy, and the Environment, visited Jakarta and spoke about the Mineral Security Partnership (MSP) with the Indonesian government, 14 other countries, and the European Union.
The MSP aims to accelerate the development of mineral supply chains and promote financial and diplomatic support. It also seeks to facilitate transactions between private companies and assist with financing through trade banks like the U.S. Export-Import Bank (EXIM).
Indonesia, which is set to operate the third largest copper mine in the country, is attracting high foreign capital investment interest. Indonesian mining company Merdeka Copper Gold announced in May that through its subsidiary, PT Bumi Suksehsindo (BSI), it plans to operate a world-class underground copper mine project in East Java’s Banyuwangi within the next two years.
Meanwhile, during the event, the Bank of Indonesia also requested investment participation from investors in projects beyond the copper industry, including a geothermal power plant project at the Umbul Telomoyo Temple in Central Java and a food and beverage project in the Aceh region.
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