Inalum Targets FID For SGAR Mempawah II To Be Completed In December 2025

JAKARTA - PT Indonesia Asahan Aluminum (Inalum) is aiming for a final investment decision (FID) or final investment decision for the expansion of the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan, in December 2025.

"This December (FID Luxury Phase II)," said Inalum Business Development Director Melati Sarnita when met on the sidelines of the Indonesia Critical Minerals Conference, in Jakarta, quoted by Antara, Wednesday, June 4.

Melati explained that Inalum has actively discussed with potential partners who will become investors at the Smelter Grade Alumina Refinery (SGAR) Phase II in Mempawah, West Kalimantan.

However, Inalum still takes into account which partners are the best, because each investor has their own advantages. There are investors who only have money, there are investors who have money and market access, to investors who have money and technology.

"Things like that that are what we are looking for are the most suitable for us. So, now it's still in the process of selecting partners," said Melati.

Melati explained the reason why Inalum expanded in Mempawah, West Kalimantan, because electricity in Kuala Tanjung, North Sumatra did not match Inalum's needs.

Inalum also targets the government's plan to develop nuclear in the Kalimantan region. According to him, the government's plan to build a nuclear power plant (PLTN) in Kalimantan is in line with Inalum, which is a smelter expansion in Mempawah.

This is because one of the unique elements of aluminum produced by Inalum is its environmentally friendly side.

Even so, Inalum will still carry out rejuvenation and modernization of smelters in Kuala Tanjung.

"Kuala Tanjung will still have additional capacity. Because it's old, we must have a renewal, there is modernization," he said.

The SGAR Mempawah project connects the supply chain between bauxite ore minerals in West Kalimantan and aluminum smelting plants.

The project is divided into phases I and II, and costs an investment of around 1.7 billion US dollars with each project increasing the production capacity of alumina to a level of one million tons annually, and estimating bauxite raw materials of 3.3 million tons per year.

On Tuesday, September 24, 2024, Joko Widodo (Jokowi), who was then the President of the Republic of Indonesia, inaugurated the first bauxite injection of the smelter grade alumina refinery (SGAR) owned by PT Borneo Alumina Indonesia in Mempawah Regency, West Kalimantan Province.

Jokowi explained that with the construction of the bauxite smelter in Mempawah, Indonesia no longer imports 56 percent of aluminum to meet domestic needs which reaches 1.2 million tons.