Building Integrated Smelters, MIND ID Aims to Reduce Indonesia’s Aluminium Imports
Fri 06 Mar 2026, 10:05 AM
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Herry Permana, Assistant Deputy for Mineral and Coal Development at the Coordinating Ministry for Economic Affairs, revealed that the aggressive downstreaming efforts (hilirisasi) carried out in recent years could significantly reduce Indonesia's imports. He emphasized that downstreaming related to natural resource management can provide much greater added value.
He cited the bauxite-to-aluminum downstreaming carried out by MIND ID through Inalum and Antam in Mempawah, West Kalimantan, which has already reached the groundbreaking stage.
"This means that because our demand for aluminum is high, we must reduce imports so that the domestic industry can grow. It is indeed not easy, but it is something we must do," said Herry during the CNBC Indonesia Mining Forum 2026 on Friday (March 6, 2026).
He stressed that if downstreaming is not implemented now, amidst favorable global conditions, the country could lose a vital opportunity. This situation also serves as momentum for the government to move faster in encouraging downstream industries.
"There is no other choice to optimize our natural resources; for example, coal must also undergo downstreaming. Otherwise, we are just selling raw materials. Although it takes time, the point is we must provide added value," Herry added.
For context, in early February 2026, MIND ID began constructing an integrated bauxite-aluminum downstream project in Mempawah, West Kalimantan. This was marked by the groundbreaking ceremony for the Smelter Grade Alumina Refinery (SGAR) Phase 2 and PT Inalum's second aluminum smelter on Friday (February 6, 2026).
MIND ID President Director Maroef Sjamsoeddin stated that this groundbreaking marks the creation of a complete industrial supply chain for the aluminum industry. This facility is not just for production but serves as an integrated national industrial ecosystem, covering raw materials, energy, infrastructure, and human resources.
He revealed that the total investment for this integrated project—which includes the operational SGAR Phase 1, SGAR Phase 2, Inalum’s second aluminum smelter, and the power plant in Mempawah—is estimated to reach IDR 104.5 trillion.
"The construction and operation of the alumina smelting facilities is a strategic program with an investment value of IDR 104.55 trillion, or equivalent to USD 6.23 billion," he concluded.
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