Inaugurate Galaunesia, Minister Of Industry Reveals 5 Challenges To Develop Aluminum Downstream

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) revealed that there are five challenges that must be resolved in an effort to develop downstream aluminum commodities in the country.

This was stated by the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in the inauguration of the Association of Indonesian Aluminum Industry Association (Galungesia) in Jakarta, Wednesday, June 14.

First, the availability of infrastructure and energy both in the form of roads, ports, and electricity outside Java, especially to support smelter activities.

"Second, from the aspect of human resources (HR) to support smelter activities," said Minister of Industry Agus in a written statement, Thursday, June 15.

Third, research that requires technological and capital aspects. Fourth, challenges from the logistics side. "The fifth, challenges from the external side in the form of resistance from foreign parties to downstream policies," said Agus.

Minister of Industry Agus said that his party is committed to continuing to boost downstream industries based on processing metal mineral resources.

"Aluminum is one of the metal mineral resources that is the focus of this downstream policy. Indonesia's mainstay metal commodity has domestic market potential which reaches one million tons," he said.

Although the market is large and potential, PT Inalum is currently only able to provide 250 thousand tons. "So, there is still a very large room to grow for investors to meet the needs of national aluminum," said Agus.

According to Agus, one of the steps to answer these challenges is to synergize with various related parties, including industry players who are members of the association.

Therefore, Minister of Industry Agus hopes that the presence of GALUNESIA can become a new energy to answer every challenge of national downstreaming.

The establishment of Falungesia was also encouraged and initiated by the Directorate General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry. The association will be part of stakeholders who can realize steps to reservoke the national aluminum industry chain.

"We hope that Gladulesia can improve communication between its members and between members and the government, as well as strengthen the data that is currently the key to success in any sector. Hopefully GALUNESIA can become a partner of the government by providing input that can strengthen policies in bauxite-based downstreaming, in this case aluminum," said Agus.

On the same occasion, GALUNESIA General Chair Oktavianus Tarigan said the association strongly supports the government's efforts to maximize the aluminum industry.

According to him, the potential value chain of aluminum is very large, including to support the development of an electric vehicle (EV) ecosystem launched by the government. Likewise with the implementation of green energy which really needs aluminum in the future.

"From upstream to downstream, it will be synergized for all stakeholders," added Oktavianus, who is also the SEVP for PT Indonesia Asahan Aluminum (Persero) Business Development.