The realisation of bauxite downstream investments in the second\nquarter of 2026 reached Rp 40.1 trillion, jumping 193 percent compared\nto the first quarter of 2026, which amounted to Rp 13.7 trillion. This\nachievement places bauxite at the top of national downstream investment,\nsurpassing nickel, which has long been the dominant commodity.<\/p>\n
Minister of Investment and Downstream Rising\/Head of BKPM Rosan\nPerkasa Roeslani stated that the shift indicates the national downstream\nprogramme is beginning to develop more evenly and no longer relies\nsolely on the nickel industry. \u201cUsually nickel is always number one. Now\nit is shifting, with bauxite becoming number one because there is indeed\nsome bauxite smelter construction, both by domestic and foreign\ninvestors,\u201d Rosan said in Jakarta.<\/p>\n
Overall, downstream investment realisation in the second quarter of\n2026 reached Rp 152.7 trillion, an increase of 5.7 percent compared to\nthe same period last year. This value accounts for 29.8 percent of the\ntotal realised national investment, which reached Rp 511.8 trillion. In\naddition to creating added value, the increased investment has also had\nan impact on labour absorption.<\/p>\n
Based on commodities, bauxite downstream investment was the largest\nat Rp 40.1 trillion, followed by nickel at Rp 29.4 trillion, copper at\nRp 16.7 trillion, iron and steel at Rp 13.2 trillion, silica sand at Rp\n4 trillion, and other commodities such as tin, gold, silver, cobalt,\nmanganese, coal, Buton bitumen, and rare earth metals at Rp 4.7\ntrillion.<\/p>\n
One of the projects supporting the increased investment is the\nconstruction of the Smelter Grade Alumina Refinery Phase I in Mempawah,\nWest Kalimantan, developed by the MIND ID Group through PT Indonesia\nAsahan Aluminium (INALUM) together with PT Aneka Tambang Tbk (ANTAM).\nThe facility has a production capacity of 1 million tonnes of alumina\nper year, requiring approximately 3.3 million tonnes of bauxite\nannually.<\/p>\n
Member of Commission XII of the House of Representatives, Eddy\nSoeparno, positively welcomed the increase in downstream bauxite\ninvestments. He noted that the bauxite sector has indeed lagged behind\nnickel because more investment has flowed into the nickel processing\nindustry. \u201cWe welcome the investment achievements in the downstream\nbauxite sector through a sharp increase in smelter investment. We are\nindeed waiting for even more investment in the bauxite smelter sector as\nit tends to lag behind investments in the nickel sector,\u201d Eddy said. He\nexpressed hope that smelter construction would not stop at the initial\nprocessing stage but continue through to the development of downstream\nindustries so that the added value gained by Indonesia will be\ngreater.<\/p>\n
Throughout January to June 2026, realised investments were recorded\nto have absorbed 1,448,862 workers. In the second quarter of 2026 alone,\nlabour absorption reached 742,263 people, an increase of 5.1 percent\ncompared to the same period last year.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bauxite-downstreaming-investment-surpasses-nickel-for-first-time-1784555633", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }