Indonesia's Bauxite Billions Buried Under Palm Oil Plantations, ABI Warns

Published: Oct 17, 2025 11:00

Save

[SMM Aluminum Express News] The Chairman of the Indonesian Bauxite Association (ABI), Ronald Sulistyanto, has highlighted a significant structural challenge facing the national bauxite industry. He revealed that approximately 90% of Indonesia's documented bauxite reserves are situated beneath land under Cultivation Rights (HGU), predominantly palm oil plantations.

Consequently, these substantial reserves, estimated between 1 to 2 billion metric tons, cannot be utilized without formal access to these HGU areas. A further complication is that plantations under 15 years of age typically deny access as they are not yet scheduled for replanting.

To resolve this impediment to mineral resource development, Sulistyanto urged the government to establish clear regulations that mandate Business-to-Business (B2B) cooperation between HGU holders and mining companies. He asserted that equitable terms can be established, allowing agricultural operations to continue until replanting is due, thereby enabling mineral extraction without detriment to plantation interests.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

13 hours ago

Secondary Aluminum Prices Were Expected to Face Downward Pressure and Pull Back in April[SMM Analysis]

[SMM Analysis]Weak Supply-Demand Pattern; Secondary Aluminum Prices Were Expected to Come Under Pressure and Pull Back in April

13 hours ago

14 hours ago

Supported by Multiple Factors, Aluminum Fluoride Prices Rose Sharply in April [SMM Analysis]

Overall, cost support remained strong, supply tightened while demand stayed stable. As tender prices became clear, aluminum fluoride prices were generally raised by around 800 yuan/mt in line with the guidance. Going forward, close attention should be paid to dynamic changes in raw material costs and adjustments in downstream procurement pace.

14 hours ago

16 hours ago

Bauxite Inventory at Ten Domestic Ports Rises by 2.17 Million MT

【SMM Port Inventory of Imported Bauxite】According to SMM's statistics on April 3, the total bauxite inventory at ten domestic ports increased by 2.17 million mt from the previous week.

16 hours ago