EXTERNAL FACTORS INFLUENCING THE COPPER INDUSTRY: AN EXPLORATORY STUDY FOR PT FREEPORT INDONESIA COPPER OPERATION

• Main Author: Arkanta Leriawan, Falen
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70807
• Institution: Institut Teknologi Bandung

The copper commodity is a very important commodity that is widely used in cross industries sectors. Building construction is the single largest market for copper, followed by electronics products, transportation, industrial machinery, consumer and general product. The COVID-19 pandemic that started in March 2020 had causes a major economic shutdown. The copper commodity undergone a significant changes both in supply, demand, and ultimately price. In the post COVID-19 outbreak, the copper commodity is also predicted to experience an increase in demand as the worldwide transition towards Renewable energy increases. The use of electric vehicle and renewable power generation contributes significantly to the increase of demand to the copper commodity. These situation is elaborated as the external factors that act both as a challenge and an opportunity for the copper industry. PT Freeport Indonesia (PTFI), a subsidiary of Freeport McMoran, the world 6th largest copper producer. PTFI Copper Operation Based its exploration and mining operation in Tembagapura, Papua. Other than exploration and mining, PTFI Copper Operation also conducts processing and refining operation in Gresik, Central Java through PT Smelting, subsidiary of PTFI. PTFI and its subsidiary PT Smelting is part of the key player in the global value chain of the copper industry. The method that is used in this research is in the form of a exploratory research using thematic analysis. Exploratory research will be used as the foundation of this research with thematic analysis that will serves as the methodology. This research aimed to understand the sets of external factors that are both challenge and opportunity by the Worldwide Copper Industry and PT Freeport Indonesia’s Copper Operation. By conducting secondary and primary data research and thematic analysis researcher will try to understand the multitude of factors that affects PTFI Copper Operation and the worldwide copper industry. It was observed and analysed that multitude of external factors constitute to the fluctuation of copper price. Moreover, these sets of factors that comprises of challenges and opportunity will be a main force of driver of the Copper Industry. PEST analysis is used as a tool to comrprise all the An industry that only comprises of several key players in the global value chain. Thus making it more prone to disruption. From a theoretical point of view and due to the nature the research being a exploratory research, the results serve as a basis for researchers in the area who aim to understand and expand the debates on this topic through future research. From a practical point of view, the results can serves as a benchmarking in terms of external factors analysis and discussion that will affect the stakeholders that is involved in the worldwide copper industry, not limited and exclusive only to PT Freeport Indonesia.