PT Freeport Indonesia (PTFI) has warned that the U.S. decision to increase import tariffs on Chinese goods could reduce global copper demand, citing China’s role as the world’s largest copper consumer. 

“China accounts for up to 50 percent of global copper demand, and most of our exports go there in the form of copper cathodes,” PTFI President Director Tony Wenas said at the House of Representatives (DPR) complex on Wednesday, July 16, 2025 in response to the U.S. government’s separate move to lower import tariffs on Indonesian products from 32 percent to 19 percent.

“We have never sold copper to the United States in any form. If Chinese exports to the U.S. slow down due to rising tariffs, global copper demand could decline, and we’d feel the impact too,” he added.

Although U.S. President Donald Trump previously indicated interest in importing copper from Indonesia, Tony said shifting exports from China to the U.S. is not straightforward, especially due to logistics constraints − shipping to China takes about one week, while reaching the U.S. could take up to 45 days.

Despite growing trade tensions, PTFI has no plans to redirect exports away from China to other markets like the U.S.

“Our production planning was designed years ago with environmental, safety, and operational factors in mind. We are not in a position to suddenly scale up capacity like a manufacturing plant,” Tony said.

He added that PTFI’s underground mining operations follow a phased approach and cannot be fast-tracked to meet short-term demand spikes. Moreover, the company does not sell unprocessed copper concentrate, as all material is refined at its smelter facility in Gresik, East Java.

Tony revealed that starting next week, PTFI’s Gresik facility will begin converting concentrate into copper cathodes, with a target production of 441,000 tons in the first year. While PTFI has no immediate plan to export to the U.S., Tony said the company is open to coordination with the government if such a move becomes necessary.

“If we have to export copper to the U.S., we’ll consult with the government,” he said.