Jakarta, Indonesia Sentinel — Indonesia mining industry continues to have a significant influence on the international stage, strengthening its position as one of the world’s largest suppliers of key mining commodities essential for various industries. This was highlighted during the 2024 LME Metals Seminar, held in London on September 30, 2024, which brought together leading figures from the mining sector, analysts, and international traders.
Hendi Prio Santoso, CEO of MIND ID, Indonesia’s state-owned mining holding company, emphasizing the global recognition of Indonesia’s mining strength. “From an industry perspective, analysts and mining leaders acknowledge Indonesia’s considerable power in commodities such as copper, bauxite, and tin,” Hendi explained, as stated from CNBC Indonesia.
MIND ID, as the holding company for state-owned mining enterprises in Indonesia, attended the seminar along with executives from its member companies, including PT Aneka Tambang Tbk (Antam), PT Freeport Indonesia, PT Inalum, and PT Vale Indonesia Tbk.
Hendi stressed the importance of the seminar for Indonesia mining industry, particularly in fostering relationships with global commodity markets. “This event is crucial for us to plan production allocation, engage with end-users, and understand market dynamics. These interactions will shape our operational strategy moving forward,” Hendi explained.
Global Shift Toward Renewable Energy
Looking ahead, Hendi highlighted the need for Indonesia to maximize its natural resources to secure a strategic role in the global mining commodity supply chain as the world is on a shift into renewable energy.
“For example, in the tin sector, we have initiated a strategic alliance with China, and we are hopeful to finalize agreements with Peru as well. Copper is another focus area, especially as global demand is surging. The world is entering a phase of energy transition from fossil fuels to electricity,” he added.
Copper and bauxite, the latter being essential for aluminum production, are crucial for supporting the global shift to renewable energy. “As demand for electricity grows, particularly from solar power and other renewable sources, copper will be increasingly critical, with usage potentially tripling compared to traditional internal combustion vehicles. Aluminum demand is expected to double, and tin, essential for electronic circuits, will also be in high demand. This presents a significant opportunity for Indonesia to optimize its role in the global supply chain,” Hendi elaborated.
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At the seminar, Tom Langston, Senior Market Intelligence Analyst from the International Tin Association, projected a rise in global tin demand from 350,000 tons in 2024 to 450,000 tons by 2030. He noted, however, that supply is unlikely to meet this growing demand.
The surge in tin demand is largely driven by the booming global semiconductor industry. Langston explained that the rise in tin prices is often mirrored by copper price increases. The telecommunications sector, particularly the expansion of 5G networks, electric vehicles, and solar panels, are expected to be the key drivers of tin demand. Given that Indonesia is the world’s largest tin producer, Langston emphasized the critical role the country will play in the global supply chain.
Indonesia’s strong presence in the copper, bauxite, and tin markets positions the country as a crucial player in the evolving landscape of energy transition and technology-driven industries. The strategic partnerships and innovations being pursued by its mining sector underscore Indonesia’s commitment to maintaining and expanding its global influence in the commodity markets.
(Raidi/Agung)
