Erick Thohir: Construction Of Alumina Smelters In Menpawah Can Absorb 2,000 Workers

SOE Minister Erick Thohir (Photo: dock. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the construction of the Smelter Grade Alumina Refinery (SGAR) in Mempawah Regency, West Kalimantan, aims to support the creation of aluminum industry integration from upstream to downstream.

SGAR, which is the National Strategic Project (PSN), will be operated by the joint two SOEs, namely PT Indonesia Asahan Aluminum (Inalum) and PT Aneka Tambang Tbk. In this connection, PT Borneo Alumina Indonesia (BAI), a subsidiary of Inalum.

SGAR is also equipped with a supply chain link between a bauxite ore mineral from Antam and an aluminum smelting plant in Inalum.

Furthermore, Erick said the construction of the phase 1 smelter also had an economic impact on the surrounding community. In fact, it is claimed to absorb 2,000 workers.

"The construction of this smelter has a positive impact socially and economically on the surrounding community, one of which is the absorption of more than 2,000 jobs," he said in an official statement, Wednesday, March 20.

For your information, SGAR phase 1 Mempawah is part of Inalum's corporate action in creating an integrated aluminum industry ecosystem from upstream (bauxite seeds) to downstream.

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

Meanwhile, the investment value of PSN reached 831 million US dollars or around Rp. 12.5 trillion. The SGAR phase 1 project is targeted to produce starting in the third quarter of 2024 and operate at full capacity by 2025.

Later, these smelters produce around 1 million tonnes of alumina per year with raw materials of 3.3 million tonnes of bauxite per year.

Most alumina products from SGAR phase 1 will be used as the main raw material for Smelter Aluminum Inalum located in Kuala Tanjung, North Sumatra, with a capacity of 275,000 tons per year.

Alumina is the main ingredient in the manufacture of primary aluminum such as ingot, alloy, billet, bar, ceramics, and other daily products. Mining Industry Indonesia (MIND ID) is a BUMN Holding Indonesian Mining Industry consisting of PT Aneka Tambang Tbk (Antam), PT Indonesia Asahan Aluminum (Inalum), PT Bukit Asam Tbk (PTBA), PT Timah Tbk, and PT Freeport Indonesia (PTFI).