Danantara: MIND ID to Operate US$3 Billion Bauxite Downstream Project

6 days ago 12

February 7, 2026 | 09:23 am

TEMPO.CO, Jakarta MIND ID will operate a bauxite-alumina-aluminum processing and refining facility in Mempawah Regency, West Kalimantan, as confirmed by Danantara CEO Rosan Perkasa Roeslani on Friday. As part of the six projects launched yesterday, Rosan said the integrated alumina and aluminum smelter downstream "is approximately US$3 billion (around Rp50 trillion)."

The project is handled by PT Indonesia Asahan Aluminium (Inalum), PT Bukit Asam Tbk, and PT Antam Tbk—all members of the state-owned mining holding company. PT Bukit Asam Tbk will be responsible for providing coal-sourced energy for the project. 

President Director of MIND ID Maroef Sjamsoeddin said the project is key to determining the direction of national development. It also has the potential to create more jobs and transform Indonesia into an aluminum producer instead of mere consumer. 

"Aluminum is a strategic material in the 21st century and plays a vital role in the transportation sector, renewable energy, construction, the defense industry, and green technology," said Maroef in his speech.

The project includes the construction of an aluminum smelter in Mempawah worth Rp40.6 trillion with a production capacity of 600 thousand tons per year. This project will employ approximately 1,370 people.

Currently, one of Inalum's aluminum smelters is located in Kuala Tanjung, North Sumatra. The production capacity of 275 thousand tons per year will be increased to 900 thousand tons per year.

"This project is part of the integrated aluminum industry development, reinforced by the construction of the Smelter Grade Alumina Refinery (SGAR) phase 2 by Inalum and Antam through PT Borneo Alumina Indonesia with SGAR smelter phase 1 which has a production capacity of 1 million tons per year," he said.

Thus, Maroef said, the production capacity of alumina will increase to 2 million tons per year, with the absorption of 6 million tons of bauxite ore per year. The mining supply is obtained from the Mining Business License area controlled by PT Antam Tbk in Mempawah Regency and Landak Regency.

Read: Indonesia's Danantara Launches $7 Billion Downstream Investment Projects

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