Antam Strengthens Long-Term Performance Through Mempawah Alumina Refinery Project

The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has officially commenced construction of the Smelter Grade Alumina Refinery (SGAR) Phase 2 project in Mempawah, West Kalimantan. PT ANTAM (Persero) Tbk (ANTM), as a state-owned enterprise, is participating in this crucial phase. The project, with an investment value of Rp 14.8 trillion, is being built through a collaboration between state-owned enterprises and subsidiaries of MIND ID, namely PT Inalum together with PT Aneka Tambang Tbk (ANTM) and PT Bukit Asam Tbk (PTBA). ANTM’s involvement is strategic, given that the company does not solely rely on gold, but also on nickel, bauxite, and alumina. This diversification makes ANTM more resilient to fluctuations in the price of a single commodity. Operated through PT Borneo Alumina Indonesia (BAI), this project will produce 1 million tonnes of alumina per year. Combined with the already operational SGAR Mempawah Phase 1, total alumina production from Mempawah will reach 2 million tonnes per year. When the SGAR Mempawah Phase 2 project becomes operational at the end of 2028, Indonesia is expected to be free from alumina imports, which are the raw material for the aluminium industry. The project will absorb approximately 6 million tonnes of bauxite ore per year from PT Aneka Tambang, specifically from bauxite mining areas in Mempawah and Landak. Meanwhile, the electricity supply for SGAR Mempawah Phase 2 will be provided by PT Bukit Asam. “Through a downstreaming strategy, ANTAM processes bauxite into high-quality aluminium, in accordance with the mandate for domestic mineral raw material processing,” ANTAM stated, as quoted from the company’s Instagram account on Wednesday. “This is not just about processes and results in industry and the market, but also about the nation’s mineral sovereignty. We are no longer merely producing raw bauxite materials but providing added value of up to 70 times, and the results can be enjoyed by the entire nation,” ANTAM added. Meanwhile, MIND ID President Director Maroef Sjamsoeddin said this project plays a strategic role in strengthening raw material supply, reducing import dependency, and enhancing Indonesia’s position in the global supply chain. “It can create a multiplier effect that increases domestic economic output, with an estimated GDP increase of around Rp 71.8 trillion per year,” he explained. “The construction and operation of the alumina smelting facility is a strategic programme with an investment value of Rp 104.55 trillion, equivalent to US$6.23 billion,” he added. SGAR began construction in 2020 in Mempawah Regency, West Kalimantan. The alumina smelter connects the supply chain between bauxite ore minerals from West Kalimantan and the aluminium smelting plant operated by INALUM.