Indonesia’s state-owned mining holding company, MIND ID, is confient that downstreaming is an answer to the country’s reliance on imported industrial raw materials.

Several downstream products developed by MIND ID, such as sulfuric acid and caustic soda, play a strategic role as key raw materials in various industrial sectors, including mineral refining and manufacturing.

MIND ID’s Director of Portfolio and Business Development, Dilo Seno Widagdo, revealed that currently, most supporting materials for smelters and refineries are still imported.

“To support refineries and smelters, we need supporting materials, most of which are still being imported. The strategic downstream projects of the MIND ID Group provide a solution by producing industrial raw materials domestically,” he said as quoted in a statement on Friday, March 7, 2025.

One of the tangible steps in this direction is through PT Freeport Indonesia (PTFI), which has started producing sulfuric acid (H₂SO₄) at its Sulfuric Acid Plant located in the Gresik Special Economic Zone (KEK Gresik), East Java.

The plant has a production capacity of 1.5 million tons of sulfuric acid per year, generated from copper slag combustion and industrial waste such as slag and gypsum. This product plays a crucial role in supporting smelters with High-Pressure Acid Leaching (HPAL) technology and serves as a primary raw material for industries such as fertilizers, batteries, pulp, and paper.

Additionally, MIND ID, in collaboration with PT Freeport Indonesia, is also evaluating the production of caustic soda, which could be utilized in the aluminum industry. Caustic soda is an essential chemical widely used in raw material purification and various manufacturing processes.

“We are not stopping at just one product. We aim to complement the entire industry. Through downstreaming, we seek to reduce dependence on imported industrial raw materials,” Dilo concluded.