Inalum Urges Suspension of New Alumina Plants, Citing Oversupply Fears and Bauxite Reserve Strain

Published: Mar 31, 2026 19:02

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PT Inalum, Indonesia's state-owned aluminum giant, called on the government to suspend the construction of new alumina and aluminum plants on Tuesday, citing concerns about oversupply and pressure on the country's bauxite reserves.

Melati Sarnita, CEO of Inalum, pointed out that Inalum is concerned that the aluminum industry will face similar problems to the nickel industry after rapid growth, such as oversupply affecting global prices and environmental issues.

Inalum cited market data to estimate that once all the alumina projects under construction start operating, Indonesia's alumina capacity will increase from the current about 9 million tons to 29.8 million tons.

Melati said that once all projects are completed, the original aluminum capacity is expected to increase from the current

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