【SMM Aluminium Flash News】Indonesian state-owned aluminum maker Inalum plans to put a new smelter into operation in 2029.

Published: Nov 24, 2025 09:10

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According to foreign media reports, Melati Sarnita, CEO of Indonesia's state-owned aluminum company PT Indonesia Asahan Aluminium (Inalum), said on Thursday that the company's new aluminum plant in West Kalimantan is scheduled to begin production in 2029. Sarnita told lawmakers that the company plans to build a 600,000-ton-per-year aluminum smelter, with an estimated investment of nearly $2.5 billion. The new plant will increase the company's current capacity by approximately 275,000 tons. She stated that the increased capacity aims to reduce Indonesia's dependence on imports, noting that Indonesia currently imports about 54% of its aluminum. Sarnita said the company is in talks with potential strategic partners for the new aluminum plant, including sovereign wealth fund Danantara and other global companies. She indicated that a Chinese company providing smelting technology is also expected to hold approximately 5% to 10% of the project. She did not disclose the company's name. The project requires 1.2 GW of power capacity and plans to purchase electricity from the state-owned power company or other suppliers. The company is also working to expand the capacity of its refinery to double its production of smelter-grade alumina, increasing output from the current 1 million tons to 2 million tons by 2028.

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