The Ministry of Finance has confirmed that it will not relax the policy that bans exports of copper concentrate this year.
This decision is in line with the policies of the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Trade, which have banned the export of copper concentrate as of January 1, 2025.
Director General of Customs and Excise at the Ministry of Finance, Askolani, said that this policy refers to the previously established regulations.
“Regarding the export of copper concentrate, we can convey that currently the export quota is only given by ESDM until 2024. Then, in Minister of Trade Regulation (Permendag) No. 11/2023, export ore is also only allowed until December 2024,” Askolani told a press conference at the Ministry of Finance office in Jakarta, on Monday, January 6, 2025.
He added that until now, the ministry has not received a proposal from mining companies to continue exporting copper concentrate.
“So, starting January 1, 2025, we do not see any proposals from companies to export copper concentrate according to the provisions set by ESDM ministry and the Minister of Trade Regulation,” he said.
However, PT Freeport Indonesia (PTFI) is reportedly proposing a relaxation of copper concentrate exports after the policy ends on December 31, 2024. This measure was driven by a fire incident at a smelter located in the Gresik JIIPE Special Economic Zone (KEK), East Java, which affected the company’s operations.
President Director of PT Freeport Indonesia, Tony Wenas, said that the company is temporarily stopping all copper cathode production operations at the smelter.
“It’s still fully stopped. If it’s being repaired, it’s impossible to produce. Because that’s CO2 Capture,” Tony said.
The fire incident is a challenge for PTFI in meeting production targets, so the company is trying to get an export relaxation permit to maintain the sustainability of operations. However, the final decision regarding the relaxation application is awaiting approval from the government.
The ban on copper concentrate exports is part of the government’s efforts to encourage mineral downstreaming in the country. Through this policy, the government hopes to increase the added value of mineral processing and strengthen the national industry. With this ban, mining companies are expected to focus on building smelters and copper processing domestically to support sustainable economic growth.
