Inalum Reveals Danantara Will Enter The Alumina Mempawah Phase II Smelter Project

Caption: Director of Business Development of PT INALUM Arif Haendra (right). Photo: Theresia Agatha/VOI

BOGOR - Holding Indonesia Mining Industry MIND ID through PT Indonesia Asahan Aluminum (INALM) conveyed the latest developments regarding the construction of Mempawah Alumina Refinery (SGAR) Smelters entering phase II.

Smelters managed through INARUM and PT Aneka Tambang Tbk (ANTM) or Antam are expected to be able to produce two million alumina per year.

Director of Business Development of PT INALUM Arif Haendra said the Danantara Investment Management Agency (BPI) would take part in the project.

"Yes, Danantara's plan will play a role," said Arif at the Media Gathering of the Industrial Journalists Forum (Forwin) in Sentul, Bogor, West Java, Friday, November 14.

However, Arif has not been able to convey the amount of the number that will be disbursed by Danantara. According to him, it is still under discussion. "Well, what will happen after we talk about it," he said.

Arif said, later the investment value to be disbursed will reach 700-800 million US dollars or equivalent to Rp1.33 billion (assuming an exchange rate of Rp16,725).

"Approximately 700-800 million dollars. Because there are infrastructures that we have to complete. Because there, right, it's remote, far from ports. We have to build logistics facilities," he said.

According to him, the SGAR phase II project is currently in the preparation stage for the completion of the Bankable Feasibility Study (BFS) and Final Investment Decision (FID), which is targeted for completion in December 2025.

The two documents will form the basis for starting the Engineering, Procurement and Construction (EPC) process.

"December, because the bankable feasibility study (FS) will be completed in November," he said.

As part of the downstream strategy, INALUM will also build a new smelter to absorb the produced alumina.

Hal itu sekaligus memperkuat rantai pasok industri aluminium nasional.

Di samping itu, proyek tersebut merupakan langkah strategis untuk meningkatkan nilai tambah mineral Indonesia.

Dengan integrasi lebih kuat, proyek itu diharapkan akan menjawab kebutuhan aluminium nasional yang saat ini mencapai 1,2 juta ton per tahun.

This also strengthens the supply chain of the national aluminum industry.

In addition, the project is a strategic step to increase the added value of Indonesian minerals.

With stronger integration, the project is expected to answer the national aluminum needs, which currently reaches 1.2 million tons per year.