The Ministry of Energy and Mineral Resources (ESDM) revealed that several Chinese companies have begun to eye the national aluminum industry. This is believed to stimulate the previously stagnant bauxite downstreaming industry.Moreover, with large reserves and growing market prospects, bauxite is considered to have a key role in driving the creation of added value domestically. Bauxite is the basic material for producing alumina, a raw material for aluminum.Secretary of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Siti Sumilah Rita Susilawati, said that currently several Chinese companies have invested in the bauxite downstreaming sector. These companies include Shandong Nanshan Aluminum in the Galang Batang Special Economic Zone on Bintan Island and China Hongqiao Group through PT Well Harvest Winning Alumina Refinery (WHW) in West Kalimantan."Some of them are also planning to expand into aluminum smelters," Siti told Bisnis on Thursday (10/7/2025).Indonesia is working to smooth bauxite downstreaming, which has always been hampered by funding. According to Siti, the bauxite downstreaming trend is currently in a transitional stage.She explained that since the implementation of the ban on raw bauxite exports in 2023, production has decreased, and several smelter projects are still under construction."The challenge is accelerating investment realization and the readiness of supporting infrastructure," Siti added.Based on data from the Ministry of Energy and Mineral Resources, Indonesia's bauxite reserves reach around 7.4 billion tons, with 2.7 billion tons of them ready for exploitation. This potential places Indonesia as one of the countries with the largest bauxite reserves in the world.Meanwhile, bauxite ore production reached 31.8 million tons in 2022. However, after the implementation of the export ban, this figure decreased to 19 million tons in 2023.Siti is also optimistic that this figure will increase again as new downstream projects are approaching the operational stage.She hopes that the presence of serious investors will not only build alumina processing plants, but also continue to the final aluminum product ( end product )."Thus, it is hoped that a sustainable and independent industrial ecosystem will be formed so that domestic added value can increase significantly," she said.The Ministry of Energy and Mineral Resources is currently evaluating the 2024–2026 Work Plan and Budget (RKAB) submissions from companies holding bauxite mining business permits (IUP).This year's national production plan is estimated at around 14 million tons, adjusting for the input capacity of refining and processing facilities (smelters), which currently stands at 13.88 million tons per year.This production figure comes from approximately 15 to 16 bauxite mining companies affiliated with alumina smelters. Currently, four bauxite smelters are operating commercially, with a total input capacity of 13.88 million tons per year, producing 4.3 million tons of smelter grade alumina (SGA).These smelters include PT Well Harvest Winning Alumina Refinery (Ketapang), PT Indonesia Chemical Alumina (Tayan), and PT Bintan Alumina Indonesia (Bintan).However, domestic alumina processing capacity remains limited. This is because PT Indonesia Asahan Aluminum (Inalum) in Kuala Tanjung is the only national aluminum producer with an alumina input capacity of approximately 500,000 tons per year.Siti also said that going forward, supervision of the construction and operation of aluminum smelters will continue to be strengthened.
Source https://djakarta-miningclub.com