REPUBLIKA.CO.ID, JAKARTA -- Indonesia to achieve its target in aluminum self-sufficiency. Amid rising domestic demand for aluminum as a strategic material to support the growth of the manufacturing and renewable energy sectors, Indonesia’s state-owned mining holding company, MIND ID, remains committed to advancing downstream supply chain integration.
Through its subsidiary, PT Indonesia Asahan Aluminium (INALUM), MIND ID is preparing to expand national aluminum production capacity to 900,000 tons per annum (KTPA) by 2029, an increase from the current installed capacity of 275,000 KTPA.
This initiative aims to narrow the gap between national aluminum supply and demand, which currently stands at 1.2 million tons annually. Domestic aluminum consumption is projected to grow by approximately 600% over the next 30 years, driven primarily by the development of electric vehicle (EV) and EV battery ecosystems.
Aluminum constitutes around 18% of the materials used in a single EV battery pack, while the production of a 1 MW solar photovoltaic (PV) system requires roughly 21 tons of aluminum.
To support this growth, MIND ID is developing a new aluminum smelter in Mapawah with a production capacity of up to 600 KTPA. Combined with INALUM’s existing facilities, this will bring MIND ID’s total aluminum production capacity to approximately 900 KTPA.
On the upstream side, MIND ID has commissioned Phase I of its Smelter Grade Alumina Refinery (SGAR) with a capacity of 1 million tons per year, the primary raw material for aluminum production. SGAR Phase II is also in preparation and will add another 1 million tons per year to the total capacity.
To secure a consistent supply of bauxite ore, PT Aneka Tambang Tbk, also part of the MIND ID Group, is constructing a bauxite washing facility in Mapawah with a capacity of 1.47 million tons per year.
In a recent visit to the SGAR Phase I facility in Memphis on Thursday (24 July 2025), MIND ID President Director Maroef Sjamsoeddin, accompanied by members of the Board of Commissioners and Directors, reviewed operations and discussed preparations for SGAR Phase II and the upcoming aluminum smelter project.
Maroef emphasized that bauxite, alumina, and aluminum are critical materials for advancing Indonesia’s sustainable manufacturing and renewable energy industries.
“The MIND ID Group is committed to driving integrated aluminum downstream development to strengthen Indonesia’s position as a leading global aluminum producer and achieve self-sufficiency in supporting its manufacturing sector while reducing reliance on imports,” he stated.
He further affirmed that this expansion of the aluminum downstream ecosystem will adhere to principles of sustainable production and operational excellence in line with international standards.
MIND ID is also focused on ensuring efficient, transparent, and market-responsive maintenance and reliability across its strategic projects. The company emphasizes infrastructure integration, such as logistics, and is committed to social sustainability in surrounding operational areas.
“For MIND ID, building an integrated downstream ecosystem is an investment in the nation's future. It must be managed with responsibility, professionalism, and a transformative mindset to help Indonesia realize its ambition of becoming a sovereign industrialized nation based on its natural resources,” Maroef concluded.
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