PT Pertamina Patra Niaga is supplying chemical products, fuel, and lubricants to support the smooth operation of the national strategic project (PSN) Smelter Grade Alumina Refinery (SGAR) at PT Borneo Alumina Indonesia.

"We fully support the government's efforts to enhance the value of bauxite products into alumina products by supplying supporting products, including chemicals, fuel, and lubricants," said Director of Central Marketing and Commerce of Pertamina Patra Niaga, Maya Kusmaya, in a statement received in Jakarta on Monday.

This project is part of Indonesia's efforts to process bauxite into alumina domestically, thereby reducing dependence on raw material exports and increasing the added value of the country's mineral resources.

"Our chemical product, caustic soda, will be supplied in a quantity of 138,000 MT during 2024, and we predict that the volume of supply will continue to increase in line with the growing production needs of alumina," said Maya Kusmaya.

PT Borneo Alumina Indonesia is a joint venture between PT Indonesia Asahan Aluminium (Persero) or INALUM and PT Aneka Tambang Tbk (ANTAM).

Located in West Kalimantan, the company was established to develop and operate a refinery project with a production capacity of 1 million tons of alumina per year.

This alumina refinery aims to process bauxite into smelter-grade alumina (SGA). The project is expected to support the government's initiative to enhance the downstream industry and improve Indonesia's competitiveness in the global market.

Separately, President Director of PT Borneo Alumina Indonesia, Leonard Manurung, explained that caustic soda is one of the main raw materials for producing smelter-grade alumina.

"With this cooperation, we hope to ensure the availability and smooth supply and production at PT Borneo Alumina Indonesia's plant," said Leonard.

He added that the success of the program is due to the collaboration and synergy within the Pertamina Group, between SH Commercial and Trading PT Pertamina Patra Niaga and SH Integrated Marine Logistics PT Pertamina International Shipping, to ensure the timely and safe delivery of products.