Jakarta, CNBC Indonesia \u2014 PT Aneka Tambang Tbk (ANTM), or Antam, is\nbeginning to reap the benefits of its downstreaming development. The\nprogress is seen as a new catalyst for the company\u2019s performance and its\nshares.<\/p>\n
Phintraco Sekuritas analyst Indra Setyadi said Antam continues to\nstrengthen downstreaming in the battery and aluminium ecosystems.\nElectric vehicle (EV) battery ecosystem development includes a rotary\nkiln electric furnace (RKEF) project, which has reached the engineering,\nprocurement and construction (EPC) stage, while the high-pressure acid\nleach (HPAL) project is awaiting investment approval.<\/p>\n
He said Antam\u2019s broader vision is to establish an integrated EV\nbattery value chain with support from strategic partners.<\/p>\n
In the aluminium ecosystem, Indra said the Mempawah Smelter Grade\nAlumina Refinery (SGAR) is operational and recorded alumina sales of\n350,000 tonnes in the first half of 2026, with sales targeted to reach\n700,000 tonnes by year-end.<\/p>\n
\u201cSGAR contributed Rp257.6 billion in profit to Antam through PT\nBorneo Alumina Indonesia (BAI) in the first half of 2026. The profit\ncontribution is expected to increase as production rises,\u201d Indra said in\na research report, cited on Thursday (15 October 2026).<\/p>\n
According to official Antam data, SGAR is located in Sungai Kunyit,\nMempawah Regency, West Kalimantan, and is managed by BAI, a joint\nventure between Antam and Inalum. Phase I of SGAR has production\ncapacity of one million tonnes a year.<\/p>\n
Under the plan, 550,000 tonnes of alumina will be allocated to meet\nInalum\u2019s domestic needs, while the remaining approximately 450,000\ntonnes will be destined for export markets.<\/p>\n
Indra said the expansion of downstreaming is also supporting Antam\u2019s\nbauxite business, as SGAR\u2019s ore requirements are supplied by the\ncompany\u2019s mines. In the first half of 2026, Antam\u2019s bauxite sales rose\n24.4% to around 1.3 million wet metric tonnes (wmt), in line with SGAR\nbeginning operations.<\/p>\n
In other downstream segments, ferronickel sales increased 32% to\naround 7,600 tonnes of nickel, while chemical-grade alumina sales rose\n10.2% to approximately 100,400 tonnes.<\/p>\n
Overall, Antam recorded revenue of Rp62.71 trillion in the first half\nof 2026, up around 6.3% from the same period a year earlier. Gold\nremained its largest source of revenue, followed by nickel, then bauxite\nand alumina. Net profit reached Rp6.91 trillion, an increase of 34%\ncompared with the first half of 2025.<\/p>\n
With EBITDA growth and a greater profit contribution from associated\nentities, particularly BAI, Phintraco Sekuritas forecasts Antam\u2019s 2026\nnet profit could reach around Rp11.6 trillion, a 61.6% increase.<\/p>\n
Phintraco Sekuritas maintained its buy recommendation on ANTM shares,\nwith a target price of Rp4,840. The target implies price-to-earnings\nratios of approximately 10 times for 2026 and 9.6 times for 2027, and\nsuggests potential upside of around 56%.<\/p>\n
Meanwhile, Antam\u2019s Director of Downstreaming Strategy and Downstream\nOperations, I Dewa Bagus Sugata Wirantaya, said downstreaming\ndevelopment is aimed at strengthening links across the ecosystem, from\nAntam\u2019s mineral resources to processing industries and downstream\nproducts, thereby creating added value.<\/p>\n
\u201cAntam continues to develop downstreaming to increase the added value\nof the mineral resources we own. In the EV battery ecosystem, the\nbattery-cell manufacturing facility in Karawang began operating in 2026.\nFor bauxite, the development of the alumina ecosystem strengthens the\nvalue chain from bauxite to alumina and is an important part of our\nefforts to build an increasingly integrated and diversified business\nportfolio,\u201d Dewa said.<\/p>\n
\u201cOur focus is to ensure that every downstreaming development\nstrengthens Antam\u2019s value chain while contributing sustainably to the\ncompany\u2019s growth and benefiting the Indonesian people. That is why each\nproject is carried out in a measured way, so value creation can continue\nto increase as downstream operations are strengthened,\u201d Dewa added.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/antams-downstreaming-business-surges-the-evidence-1792068663", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }