Indonesia is a major producer of copper, with the seventh-largest production in the world in 2023. Copper is one of Indonesia's main exports with smelting facilities being established in recent years. The largest copper mines in the country are theGrasberg mine inCentral Papua and theBatu Hijau mine inSumbawa, and the two mines contribute the vast majority of the national production. The mines have been accused of causing significant environmental impact through the dumping oftailings and of human rights violations against local communities.
The oldest known copper artefacts in Indonesia were dated to between the 4th century BC and 1st century AD, in Harimau Cave inSouth Sumatra.[1] Although later artefacts indicate local metallurgical processing, the raw copper was sourced from outside modern Indonesian through trade.[2] Rich copper (and gold) deposits were discovered in 1936 byJean Jacques Dozy atPuncak Jaya in modernCentral Papua, and theGrasberg mine, the largest copper mine in the country owned byFreeport McMoran, began operations there in 1973.[3] In 1990, further copper deposits were identified inSumbawa, and theBatu Hijau (owned byNewmont) began production in 2000.[4] In 2014, the Grasberg and Batu Hijau mines accounted for 97 percent of Indonesian copper output.[5]
Since 2009, government policies requiring downstreaming has resulted in Newmont's divestment from the Batu Hijau mine while Freeport McMoran has invested in refineries.[6] The first copper refinery was opened in 1996 inGresik,East Java, for the smelting of ores from the Freeport Grasberg mine.[7] Two more smelters, one in Gresik as Freeport's second smelter and another by Amman Mineral (Batu Hijau's new operator) inWest Sumbawa, were inaugurated in September 2024.[8] As of 2024, further mining projects are in development inBanyuwangi, East Java, inGorontalo, and inBeutong,Aceh.[9][10]
According to theUnited States Geological Survey, Indonesia mined 941 thousand tonnes and refined 310 thousand tonnes of copper in 2022, with proven copper ore reserves of 24 million tonnes.[11] In 2023, Indonesia was the world's seventh-largest producer of copper globally.[6] Copper, copper ore and concentrates was Indonesia's fifth-largest export in 2023 according to The Observatory of Economic Complexity, worth USD 8.9 billion,[12] with China and Japan being the largest buyers.[13]
Copper mines in Indonesia have been criticized by environmental and human rights groups for resulting pollution; the Grasberg mine was estimated to dump around 200 thousand tonnes oftailings into theAjkwa River in Papua, devastating the ecosystem of the river and its surroundings.[3] The Batu Hijau mine has also been sued by environmental groups for dumping tailings into the ocean, while the mine operators claimed that theMinistry of Environment had granted the mine a permit to do so.[14]Indigenous Papuan groups have accused operators of the Grasberg mine of engaging in violent interventions against strikes and protests,[15] while communities in Sumbawa claimed that the Batu Hijau mine's operations had interfered with local land use rights.[16]
The Grasberg mine has been cited as one of the largest single taxpayers in Indonesia,[3][17] contributing 0.6 percent to Indonesia's GDP (96 percent of the GDP ofMimika Regency where the mine is located) and generating 17.3 billion USD in revenue for the Indonesian government between 1992 and 2017 through taxes, export duties, royalties, and dividends.[17] The Indonesian Mining Association claimed that the two major mines generated 40 thousand jobs.[18]
