PT Indonesia Asahan Aluminium (Inalum) plans to develop the second phase of the Mempawah Alumina Refinery (SGAR Phase 2) in West Kalimantan as an expansion of SGAR Phase 1, targeting operations by 2028. The company's General Manager stated that Phase 1 has an annual capacity of 1 million tons of alumina and is scheduled to commence commercial operations (COD) by the end of 2025. Phase 2 will also have an annual capacity of 1 million tons, potentially raising domestic alumina production to 2 million tons per year.
She pointed out that Indonesia's aluminum demand is expected to surge by 600% over the next 30 years, driven primarily by electric vehicle batteries and renewable energy technologies. However, domestic production currently only meets approximately 46% of primary aluminum demand, with the remaining 54% dependent on imports.
To address the supply gap, Inalum plans to increase its aluminum production capacity from the current 275,000 tons to 900,000 tons over the next five years, enhancing self-sufficiency and reducing import dependence.
PT Indonesia Asahan Aluminium (Inalum) plans to develop the second phase of the Mempawah Alumina Refinery (SGAR Phase 2) in West Kalimantan as an expansion of SGAR Phase 1, targeting operations by 2028. The company's General Manager stated that Phase 1 has an annual capacity of 1 million tons of alumina and is scheduled to commence commercial operations (COD) by the end of 2025. Phase 2 will also have an annual capacity of 1 million tons, potentially raising domestic alumina production to 2 million tons per year.
She pointed out that Indonesia's aluminum demand is expected to surge by 600% over the next 30 years, driven primarily by electric vehicle batteries and renewable energy technologies. However, domestic production currently only meets approximately 46% of primary aluminum demand, with the remaining 54% dependent on imports.
To address the supply gap, Inalum plans to increase its aluminum production capacity from the current 275,000 tons to 900,000 tons over the next five years, enhancing self-sufficiency and reducing import dependence.