Copper prices have soared to record highs after United States President Donald Trump announced plans for a 50% tariff on imported copper. Trump's policy triggered a shock in the global market. Amid this commotion, Indonesia has a strategic opportunity to take over part of the market and strengthen its fiscal resilience through exports and export duties.
The surge in copper prices due to Trump's sentiment brought copper prices to a level of US$5.676 per pound or around $12,510 per ton, an increase of 3.58% in one day.
This increase reinforces the global trend since 2024 due to supply deficits from Latin America and soaring demand from the electric vehicle and AI sectors. Bank of America projects prices will hit US$5.44 per pound in 2026, while the International Copper Study Group predicts global consumption this year will reach 25.88 million tons.
While major copper exporting countries such as Peru and Mexico are preparing to be affected by tariffs, Indonesia is in a different position.
Export data from Satudata Kemendag shows that from January to April 2024, Indonesia exported copper ore worth US$2.26 billion and copper products and derivatives worth US$781 million.
Most of these exports are not destined for the US, but rather for China and other Asian regions. This means that the burden of US tariffs on copper is not a major risk for Indonesia, but rather a potential to fill the global supply gap.
