Inaugurating SGAR, Inalum Ensures Press Alumina Imports Of Up To 1 Million Tons

President Director of PT Indonesia Asahan Aluminum (Inalum) Ilhamsyah Mahendra. (Photo: Maria Trisnawati/VOI)

MEMPAWAH President Director of PT Indonesia Asahan Aluminum (Inalum), Ilhamsyah Mahendra ensured that the operation of the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan, Inalum was able to significantly reduce alumina imports.

Ilhamsyah said, currently, Indonesia still imports 1.2 million tons of alumina every year.

However, with SGAR's production capacity of up to 1 million tons per year, alumina imports will be significantly reduced.

"With the operation of SGAR, we will only import around 200 thousand tons of alumina. The second phase of the SGAR project will also increase the capacity of another 1 million tons, which is expected to start operating in 2028. After that, we will be fully independent without imports of alumina," he said when met by media crews in Mempawah, Tuesday, September 24.

Moreover, he said, SGAR is a strategic project that not only increases the added value of bauxite, but also supports the downstreaming of the domestic aluminum industry.

"With SGAR, we manage bauxite to become alumina in Indonesia. The added value of bauxite will increase and we can meet the needs of national aluminum." continued Ilhamsyah.

Ilhamsyah said Inalum will also continue to expand to meet the increasing needs of domestic aluminum.

"We are preparing the second and third smelters with a capacity of 600,000 tons each, so that in the next 5-10 years, our aluminum production capacity will increase from 900 thousand tons to 1.5 million tons," he added.

He also ensured that Inalum would prioritize the supply of aluminum for the domestic market, with a composition of about 70 percent of production for domestic needs and 30 percent for exports.

"We will continue to prioritize meeting domestic aluminum needs, because the domestic market continues to grow rapidly," said Ilhamsyah.