BRICS Cooperation and Downstream Mining

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Copper Downstream Needs to Be Serious

Indonesia needs to start a downstream program for copper mineral raw materials, after the imposition of tariffs of up to 50% by President Donald Trump's administration. Djoko Widajatno, Deputy Executive Director of the Indonesia Mining Association (IMA) emphasized that the readiness of copper raw material industry development needs to be realized immediately.

Such as making the tools needed for self-reliance ranging from the food security industry, to the high end industry. "From health to equipment for modern warfare," said Djoko.

According to him, the concentrate export levy is not just a tax, but a policy tool:

Forcing the realization of copper downstream
Reducing dependence on raw exports
Increase domestic added value

However, he admits that for miners, this could be a short-term burden if not accompanied by downstream readiness or other technical policy flexibility.

Export data from the Ministry of Trade's Satudata shows that from January to April 2024, Indonesia exported US$2.26 billion worth of copper ore and US$781 million worth of copper products and derivatives.

According to the Association's data, during 2022-2023, 97% of copper ore exports flowed to Asia with Japan being the main destination country with 760 thousand tons, China (680 thousand tons) and Korea (530 thousand tons). The rest of the copper ore exports flowed to Taiwan, India, Malaysia and Europe.

Indonesia-Brazil Agreement on Energy Cooperation to Food Security

While attending the BRICS 2025 Summit in Rio de Janeiro, President Prabowo Subianto also paid a state visit to Brasilia, the capital of Brazil, on Monday, July 7, 2025.

President Prabowo held a bilateral meeting with Brazilian President Luiz Inácio Lula da Silva at the Presidential Palace, Brazil. The meeting agenda focused on strengthening strategic partnerships as well as exploring the potential for new cooperation in various fields between Indonesia and Brazil.

The governments of Indonesia and Brazil agreed on a number of strategic steps to strengthen cooperation in various fields ranging from multilateral trade, energy transition, to food security programs.

Here's the agreement between the two countries:

1. Trade and Investment

Indonesia is pushing Brazil's leadership to accelerate the completion of the Indonesia-MERCOSUR Comprehensive Economic Partnership Agreement (IM-CEPA). This agreement with the South American trading bloc is considered crucial to increase the volume of trade and investment. As a follow-up, President Prabowo welcomed the planned visit of 700 Brazilian businessmen to Indonesia to realize concrete cooperation. In addition, investment cooperation will also be encouraged through the active role of Indonesia's sovereign wealth fund (SWF), namely BPI Danantara.

2. Energy and Agriculture Transition

Brazil welcomes Indonesia's plan to send a technical team to study two sectors of Brazilian excellence, namely technological modernization in the agricultural sector and the development of renewable energy, especially biofuels. This step is in line with Indonesia's commitment to achieve 100% renewable energy, by emulating the progress Brazil has made.

3. Food Security and Social Programs

Both countries share the same vision on the importance of food security. President Prabowo praised Brazil's free lunch program Programa Nacional de Alimentação Escolar (PNAE) as a role model for Indonesia's free nutritious meal program (MBG). The MBG program is targeted to reach 82.9 million children and pregnant women every day by December 2025. This state visit is an important momentum to deepen the partnership, especially by exploring the potential to increase the volume of trade and investment between the two countries.

Avert tariff war with BRICS

Indonesia has officially been a member of the BRICS group since January 2025. Now, the south-south cooperation that was established in 2001 consists of 11 countries, namely Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran.

Indonesia's joining BRICS opens opportunities to increase economic cooperation, especially non-oil and gas exports to member countries. Until 2024, the value of Indonesia's non-oil and gas exports to 10 other member countries is recorded at 92.5 billion US dollars or around 37 percent of total non-oil and gas exports. The largest share of Indonesia's non-oil and gas exports is to China (24.15 percent) and India (8.13 percent).

Opportunities to boost exports to the BRICS countries can mainly be aimed at China and South Africa. Non-oil and gas exports to the two countries in 2024 decreased compared to 2023, respectively -3.06 percent and -6.27 percent. In addition, opportunities can also be explored with Brazil, Russia, Egypt, Ethiopia, and Iran, whose role in total non-oil and gas exports is still below 1 percent.