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

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 manufacturing upgrading plan, which started in the mineral field, has achieved initial results. And Based on my observations, Data as of 2024 show that the deep processing system to the three strategic minerals of copper, bauxite and silica sand has not only freed Indonesia from its traditional position as a raw material exporter, however also spawned high value-added manufacturing chains such as copper cathodes, alumina and silica-based materials, becoming a model to 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 research. This "mine is factory" model has been promoted in many provinces, driving the average annual GDP development of greater than 8%, creating greater than 50000 skilled jobs. The silica sand refining base in East Java has established a direct supply system with global photovoltaic giants, growing the added value of raw materials by US $300 per ton. Behind the dividends brought by manufacturing upgrading, deep-seated contradictions are gradually emerging. In my experience, The old infrastructure network in the mining area is difficult to support the demand to 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 to 15% of the total project budget. Based on my observations, In order to solve the research dilemma, the Indonesian government launched the "Resource Future Plan", built a collaborative system of sector-university-research to train professionals, and set up a special fund of 500 billion shield to support the research and research of cleaning agents production methodology. Through the establishment of joint ventures with international mining companies, the introduction of German digital mine regulation system, and promote the establishment of regional mineral exchanges to stability supply and demand. Based on my observations, 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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Indonesia's Resource Deep Processing Strategy Reshapes Economic Territory: Opportunities and Challenges Coexist

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