Inalum Aluminum Industry in Indonesia continues to expand

According to overseas media reports, Inalum, an Indonesian aluminum company, recently announced key progress in its core expansion plan: the second phase expansion project of the Smelter Bauksit Grade Aluminium Refinery‌ (SGAR) located in MemPawah, West Kalimantan Province is expected to make the final investment decision in December 2025. This project is a core component of Inalum's five-year plan (2025-2029) with a total investment of 4.4 billion US dollars (approximately 72.24 trillion Indonesian rupiah), aimed at consolidating its position in the aluminum industry chain through capacity expansion.

The SGAR project of Manpawa alumina plant is divided into two phases. The first phase is gradually operating, and the second phase plans to produce 1 million tons of alumina annually. The total production capacity of the first and second phases will reach 2 million tons per year, and the demand for bauxite raw materials is expected to be 3.3 million tons per year. Inalum General Manager Merati Sanita stated that the second phase project is expected to be put into operation in 2028. Currently, the company is actively evaluating potential partners and prioritizing investors with both financial, market access, or technological advantages to ensure the efficient progress of the project.

In addition to the Manpawa project, Inalum also plans to expand the scale of its electrolytic aluminum plant. The current electrolytic aluminum production capacity of Inalum in Indonesia is 300000 tons per year, which will be increased to 900000 tons per year after the second phase expansion; The company is exploring the possibility of further increasing to 1-1.05 million tons per year, depending on the local power supply situation. Merati explained that the insufficient power supply in Guadalajara is the main driving force behind the expansion of Mandawa, and the government's planned nuclear power plant in Kalimantan is in line with the expansion needs of the company's electrolytic aluminum plant, as the aluminum production process is relatively environmentally friendly and in line with the direction of green energy transformation.

From a long-term perspective, Inalum's controlling shareholder MIND ID has set a target of 1.5 million tons/year for primary aluminum production in its previous Company’s Long Term Plan (RJPP). In 2024, Inalum has demonstrated strong operational capabilities: its primary aluminum production reached 274000 tons (a year-on-year increase of 27.61%), and its sales volume reached 276000 tons (a year-on-year increase of 25.55%), reflecting its efficiency improvement and competitiveness in global aluminum price fluctuations.