Inalum Reveals Plans to Build New Smelter

PT Indonesia Asahan Aluminium (Inalum) is undertaking three major corporate actions to advance the downstream development of Indonesia’s aluminium industry. First, optimizing the Kuala Tanjung Smelter with a target to increase production capacity.

Second, the construction of a second Smelter Grade Alumina Refinery (SGAR) in West Kalimantan. Third, the planned development of a new aluminium smelter.

“Indonesia has extraordinary potential in the aluminium sector, especially with the government’s accelerated downstreaming agenda,” said Inalum President Director Melati Sarnita, quoted Sunday (September 28, 2025).

1. Accelerating global partnerships

To realize the above corporate actions, the MIND ID subsidiary is also stepping up global cooperation.

MIND ID Corporate Secretary Pria Utama stated that global partnerships are being pursued to develop mineral downstreaming. The expectation is that these efforts will deliver greater economic benefits for Indonesia, both in terms of job creation and the added economic value generated in the future.

“Indonesia’s mineral mining industry has significant development potential. We are working to ensure that the impacts of aluminium downstreaming are optimized and can meet the expectations mandated by the Government—namely, toward Indonesia Emas 2045,” said Pria Utama.

2. Partnering with European companies

A recent example of the company’s global cooperation is the signing of a Heads of Agreement (HoA) with Netherlands-based energy and commodities company Vitol, related to the offtake for the second smelter project.

The signing took place on the sidelines of the World Osaka Expo 2025. Melati said Inalum also entered into a strategic collaboration with Tiberius together with Panasonic regarding the development of the market for Indonesian aluminium in Japan.

“For Inalum, this collaboration is not merely about capital. There is a long-term commitment to building a low-carbon aluminium industry, supporting the clean energy transition, and at the same time creating new jobs and markets,” said Melati.

3. Driving the sustainability of Indonesia’s aluminium supply

Following the signing, Inalum held discussions and business-matching sessions on potential collaboration to ensure the sustainability of Indonesia’s aluminium supply chain and industry.

These activities were carried out together with Tiberius and Panasonic.

Source: https://www.idntimes.com/business/economy/inalum-ungkap-wacana-bangun-smelter-baru-00-3m8tp-bkxqp4

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