Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral\nResources (ESDM) has responded to the recent proposal for a moratorium\non the construction of alumina and aluminium smelters.<\/p>\n
Director General of Minerals and Coal (Dirjen Minerba) at the\nMinistry of ESDM, Tri Winarno, emphasised that the government has not\nyet carried out a specific study regarding the proposal.<\/p>\n
He explained that smelter development has so far been divided into\ntwo schemes: standalone smelters and those integrated with downstream\nindustries.<\/p>\n
\u201cNot yet, not yet. So far, smelters are divided into two: one related\nto standalone, and the other integrated. The standalone ones fall under\nthe Ministry of Industry,\u201d Tri said at the RI DPR Building on Wednesday\n(15\/4\/2026).<\/p>\n
Previously, PT Indonesia Asahan Aluminium (Inalum) highlighted the\nimportance of a policy for a moratorium on the construction of alumina\nand aluminium smelters, especially amid projections of a surge in\nbauxite needs in the coming years.<\/p>\n
Inalum\u2019s President Director, Melati Sarnita, said the issue was\ndiscussed during a working visit in Pontianak, West Kalimantan.\nAccording to her, the discussion stemmed from a presentation by the\nMinistry of ESDM on the state of national bauxite resources and reserves\nas of 2024.<\/p>\n
Based on data used by Inalum, Indonesia\u2019s proven bauxite reserves\ncurrently stand at around 1 billion tonnes, with total reserves at 2.8\nbillion tonnes.<\/p>\n
\u201cThese figures were then reviewed in several analyses and\npublications regarding the forecast for Indonesia\u2019s alumina refinery\ncapacity over the next 10 years,\u201d Melati said during an RDP with\nCommission VI of the RI DPR on Tuesday (31\/3\/2026).<\/p>\n
According to Melati, based on data from Wood Mackenzie and\nFastmarkets, there are around 13 companies planning to build alumina\nrefineries in Indonesia over the next 10 years.<\/p>\n
Meanwhile, the installed capacity of alumina refineries in 2026 is\nestimated at around 9 million tonnes per year. However, this capacity\ncould rise to 29.8 million tonnes per year if all projects are\nrealised.<\/p>\n
\u201cFrom these figures, we recalculated the estimated bauxite needs\nrequired for the alumina refineries on this list,\u201d she said.<\/p>\n
Melati revealed that for existing refinery facilities, bauxite needs\namount to around 29-36 million tonnes per year. If all refinery projects\noperate, the demand could increase to 80-94 million tonnes per year.<\/p>\n
This capacity increase, according to her, will add pressure on\nIndonesia\u2019s bauxite reserves due to the intensity of usage from alumina\nrefinery smelters.<\/p>\n
In this regard, it has the potential to reduce the resilience of\ndomestic proven bauxite reserves to less than 10 years of usage and\ntotal bauxite reserves to 28 years of usage.<\/p>\n
\u201cThis is a major concern for us because one of our investments, the\nMempawah aluminium smelter, has an economic life of 30 years. This is\nalso for the forecast of Indonesia\u2019s primary aluminium smelter\ncapacity,\u201d she said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/proposal-for-moratorium-on-aluminium-smelters-esdms-response-1776250259", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }