State-owned Mining Industry Holding Company MIND ID through PT Indonesia Asahan Aluminium (Inalum) and PT Aneka Tambang Tbk (Antam) is further strengthening the integration of the national aluminium supply chain.

Smelter Grade Alumina Refinery (SGAR) has entered phase II construction to complement SGAR Phase I, which has a production capacity of 1 million tons of alumina per year and is targeted to start full operations in the first quarter of 2025. With this development, the total alumina production capacity in Mempawah, West Kalimantan, will reach 2 million tons per year.

The SGAR Phase II project is currently in the preparation stage for the completion of the Bankable Feasibility Study ( BFS) and Final Investment Decision (FID), which is targeted for completion in 2025. These two documents will be the basis for starting the Engineering, Procurement, and Construction (EPC) process.

As part of the downstream strategy, Inalum will also build a new aluminum smelter to absorb the alumina produced, while strengthening the national aluminum industry supply chain.

Director of Portfolio and Business Development of MIND ID, Dilo Seno Widagdo, said that this project is a strategic step to increase the added value of Indonesian minerals. With stronger integration, this project will answer the national aluminum needs which currently reach 1.2 million tons per year. "We see the national aluminum needs continue to increase. Therefore, we are strengthening the supply and supply chain to support the industrialization of the Indonesian manufacturing sector in the future," said Dilo as quoted in a written statement, Tuesday (1/4/2025)

Dilo added that with an increasingly solid aluminum supply chain ecosystem, the MIND ID Group will strengthen bauxite reserve exploration to ensure the sustainability of raw material supply. "National bauxite reserves are currently recorded at 158.83 million tons, while production needs will continue to increase in the future," he explained.

In addition to strengthening the industry, the development of SGAR Phase II is also expected to have a positive impact on the national economy. This project has the potential to contribute to economic growth of up to 5.5 percent by 2025, while also encouraging increased investment, employment absorption, and economic equality in the regions.

"This is in line with President Prabowo Subianto's Asta Cita, which targets the Indonesian economy to become more sovereign and grow stronger towards Golden Indonesia," he concluded.

Inalum President Director, Ilhamsyah Mahendra said, the first shipment of alumina from Mempawah to INALUM's aluminum smelter in Kuala Tanjung, North Sumatra, is expected to take place at the end of April 2025. "We are grateful that all processes in the field are running very well, and we are in the stage of reaching 100% capacity. We hope that by the end of April, the first alumina can be sent to the Kuala Tanjung site," said Ilham.

Meanwhile, Ilham explained that INALUM's aluminum smelter currently has an aluminum production capacity of up to 275,000 tons per year. All production results are prioritized to meet domestic aluminum needs. "With the SGAR Phase II expansion plan, domestic aluminum needs will be supplied more by domestic minerals, in order to strengthen Indonesia's mineral resilience," said Ilham.