JAKARTA, NNC - The government encourages the rise in national aluminum production by targeting 1.5-2 million tons by 2025. This increase is according to Presidential Regulation No. 3 of 2016 on the Acceleration of the Implementer of National Strategic Projects (PSN).
In this case, PT Indonesia Asahan Aluminum (Persero) or Inalum, one of PSN, will continue to accelerate its development. Moreover, Inalum bears the essential mandate of the state as the holding company of the state-owned mining companies.
"Some of the efforts we have undertaken, among others, focusing on creating a conducive business climate, running downstream industry programs to increase added value, and spurring the use of domestic production," said Harjanto, Director General of Metal, Machinery, Transportation and Electronic Equipment (ILMATE) in a press release, Monday, (2/26/2018).
The oldest aluminum industry in Southeast Asia established since 1979 has three main factories with an area of 200 hectares, including a carbon mill, a reduction plant, and a pouring mill. It is expected to meet the current domestic aluminum demand of 900 thousand tons per year.
He explained that the additional production capacity of Inalum is expected to play a role in reducing imports so as to safeguard the country's foreign exchange expenditure. "In fact, along with increased value added, it will also impact on job creation," he added.
President Director of PT Inalum Budi Gunadi Sadikin said Inalum produces about 250,000-260,000 tons of aluminum by 2017. Inalum plans to increase production to 500,000 tons by 2021. "Our increase in 2017 is more than 25 percent compared to 2016," he said.
Inalum targets aluminum production to reach two million tons per year. This is supported by the Smelting Plant in Kuala Tanjung and the factory in North Kalimantan. The plant in North Kalimantan is targeted to be built by 2020.