Antam And Inalum's Bauxite Smelter Generates Economic Output Of Up To IDR 150 Trillion

President Director of MIND ID, Hendi Prio Santoso (Photo: Maria Marijuwati/VOI)

MEMPAWAH - President Director of MIND ID, Hendi Prio Santoso revealed that downstreaming of bauxite commodities carried out by Antam and Inalum through PT Borneo Alumina Indonesia (BAI) has the potential to produce economic output of up to IDR 150 trillion.

"There was an output creation from an economic perspective, around Rp150 trillion more," said Hendi in his report greeting to President Joko Widodo before inaugurating the SGAR first bauxite injection in Mempawah, West Kalimantan, Tuesday, September 24.

For information, currently SGAR, which is located in Mempawah Regency, will only complete its first phase of construction and have begun to enter the commissioning stage. Later it will be continued with the construction of the second phase and will be integrated with aluminum smelters to be built in the same area.

With the integration of these smelters, Indonesia has the potential to save foreign exchange of US$3.5 billion per year from a significant reduction in aluminum imports.

Hendi reported that SGAR has a production capacity of 1 million tons per year and requires bauxite raw materials of 3.3 million tons per year with an investment cost of 941 million US dollars.

"But plus there is Rp700 billion to build road infrastructure, for hauling, and so on. So approximately Rp16 trillion in total," he explained.

Meanwhile, in the second phase, Hendi ensured that investment costs would be 'cheapy' from the first phase with an estimated investment cost of IDR 900 million dollars.

"But later the aluminum smelter will be around 2 billion dollars," he said.