Inalum Calls SGAR Luxury Phase II IDR 13 Trillion Starting Production In 2028

BOGOR - PT Indonesia Asahan Aluminum (Inalum) will soon begin expansion of the production of Smelter Grade Alumina Refinery (SGAR) Mempawah Phase II which is targeted to start production by the end of 2028.

Inalum's Director of Business Development, Arif Haendra, said the project with an investment value of up to 800 million US dollars or equivalent to Rp. 13 trillion would produce 1-2 million tons of alumina.

"(Final Investment Decision) December (2025) because the study of the bankable FS will be completed in November," Arif said in the Media Gathering of the Industrial Journalists Forum (Forwin) in Sentul, Bogor, West Java, quoted on Saturday, November 15, 2025.

Arif said that there are several facilities in the purification area that need to be completed, one of which is related to the construction of logistics facilities.

The addition of production capacity of 1-2 million tons of alumina will support the need for raw materials for new aluminum smelters that require 1.2 million tons to produce 600,000 tons of aluminum.

The new aluminum smelter project is projected to produce or commercial operation date (COD) in 2028. Currently, Inalum is opening a strategic partner to build the project.

"That's 2 million tons, 1.2 million tons used there by Smelter 2 (New Aluminum Smelter) and the remaining 800,000 tons sent to Kuala Tanjung (oluminium smelter). So it runs out," he said.

He further hopes that the production capacity in the Kuala Tanjung aluminum smelter will increase from 275,000 tons to 400.000 tons.

Arif revealed that the investment capital for downstreaming bauxite will be supported by funding from Danantara. However, the portion of funding is still under discussion.

"Yes, Danantara's plan will play a role. Well, what will happen after we talk about it," he concluded.