Indonesian Bauxite Association Warns of Supply-Refining Imbalance, Proposes Digital Price Locking System

Published: Apr 21, 2026 11:42

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[SMM Aluminum Express News] The Indonesian Bauxite Association (ABI) has warned of a potential imbalance between domestic bauxite supply and the rapid expansion of alumina refining capacity. Chairman Ronald Sulistyanto said the association mentioned that annual domestic bauxite supply should ideally not exceed 40 million tons, and alumina production capacity be 12–15 million tons per year (maximum 7 refineries). He noted that 4 alumina refineries are currently operating. The biggest issue, according to Ronald is widespread non-compliance with the Mineral Benchmark Price (HPM) by downstream players, which is hurting upstream miners’ margins. As a solution, ABI is proposing a digital transaction locking system that will automatically block payments if the price falls below the official HPM.

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