JAKARTA - Ahead of its 50th anniversary, PT Indonesia Asahan Aluminium (Inalum) has emphasized business transformation towards a stronger, competitive, and sustainable national aluminum industry, with a focus on accelerating downstream processing and strengthening the principles of Environmental, Social, and Governance (ESG) as well as creating wider added value for regions and communities.
As part of the implementation of business transformation towards a sustainable aluminum industry, Inalum strengthens the aluminum downstream strategy through a number of strategic projects as corporate actions.
Inalum Corporate Secretary Mahyaruddin Ende said the company is carrying out three major projects, namely the construction of SGAR II and Smelter II in Mempawah, West Kalimantan, and the construction of Potline IV in Kuala Tanjung, Batubara, North Sumatra.
Within this framework, Mahyaruddin conveyed that the downstream was carried out with a responsible approach as part of Inalum's commitment to the ESG principle.
"The industrialization of aluminum is a key strategy to expand the benefits of the industry while strengthening Indonesia's position in the global value chain," he said in an official statement, Thursday, December 18.
In terms of the environment, he continued, Inalum focuses on conservation in the Lake Toba area. The company is building a modern nursery with a capacity of up to 500,000 tree seedlings per year as the foundation for sustainable rehabilitation of critical land. The rehabilitation program is targeted to reach 500 hectares per year, especially in the water catchment area and the buffer area of energy sources.
This effort is also in line with the global decarbonization agenda. Inalum is implementing various carbon emission reduction initiatives that are integrated with the production process, ranging from increasing energy efficiency, using more environmentally friendly fuels, to upgrading smelting technology. Waste management based on the 3R principle (Reduce, Reuse, Recycle) is also applied to reduce environmental impacts.
"These steps strengthen Inalum's position in responding to the demands of the global market, which increasingly places carbon footprint and environmental performance as the main prerequisites in the aluminum trade," he said.
In the social dimension, Mahyaruddin said Inalum places human resource development as the foundation for long-term sustainability. The improvement program for school facilities and infrastructure, educational support, and strengthening the competence of teachers, especially in the first ring area, is the main focus.
At the same time, the strengthening of MSMEs is also carried out in a structured manner through the existence of BUMN Houses in Toba Regency as a center for training, mentoring, and improving business capacity.
"All of these initiatives are designed to provide a real social impact on independence and sustainability for the surrounding community," he said.
Ahead of its half-century, Mahyaruddin continued, the company has prepared a number of action programs as a response to the disasters that occurred in North Sumatra, Aceh, and West Sumatra.
The program includes free health checks, cheap markets at 12 locations, and the restoration of infrastructure in disaster-affected areas. In addition, it also prepares as many as 13,000 cheap food packages.
"Inalum wants to show our gratitude to the community, especially those who are victims of disasters in North Sumatra, Aceh, and West Sumatra. We hope that the assistance to be delivered by Inalum Volunteers will be meaningful, facilitate recovery, and can bring back the happy smiles of all our brothers and sisters," said Mahyaruddin.
The disaster response program will take place in the period December 2025 to the end of January 2026 and will be carried out in the company's operational areas in Toba and Coal, as well as in disaster-affected areas in North Sumatra, Aceh, and West Sumatra.
A number of programs that have been prepared include the distribution of basic necessities, health services, school mobile, disaster mitigation equipment, emergency tents, agricultural and fishery seeds, to infrastructure development.
Meanwhile, Head of Strategic Services Group Daniel Hutauruk said Inalum's Care program was a form of the company's commitment as a form of social responsibility where Inalum was present in mitigation efforts, emergency response, and post-disaster recovery, in the affected areas.
"The momentum of Inalum's 50th anniversary is interpreted as an invitation for all employees to actively participate in humanitarian action, including helping to alleviate the burden of disaster-affected communities in West Sumatra, North Sumatra, and Aceh (NAD). This spirit of togetherness is a reflection of the values of concern and solidarity that Inalum continues to maintain on the way to the future," said Daniel.
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