Antam Strengthens Long-Term Performance Through Mempawah Alumina Refinery Project
The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has officially commenced the 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 (SOE), is participating in this critical phase.
With an investment value of IDR 14.8 trillion, the project is being built through a collaboration between various SOEs and MIND ID subsidiaries, specifically between PT Inalum, PT Aneka Tambang Tbk (ANTM), and PT Bukit Asam Tbk (PTBA).
As is well known, ANTM’s involvement is strategic, as the company does not rely solely on gold but also manages nickel, bauxite, and alumina. This diversification makes ANTM more resilient to price fluctuations in any single commodity.
Operated through PT Borneo Alumina Indonesia (BAI), this project is expected to produce 1 million tonnes of alumina per year. Combined with the already operational SGAR Mempawah Phase 1, the total alumina production from Mempawah will reach 2 million tonnes per year.
Once the SGAR Mempawah Phase 2 project becomes operational at the end of 2028, Indonesia is expected to become free from alumina imports, which serve as a vital raw material for the aluminium industry.
Bauxite ore absorption is expected to reach approximately 6 million tonnes per year from PT Aneka Tambang, specifically from the bauxite mining areas in Mempawah and Landak. Meanwhile, the electricity supply for SGAR Mempawah Phase 2 will be provided by PT Bukit Asam.
“Through this downstream strategy, ANTAM is processing bauxite into high-quality aluminium, in accordance with the mandate for processing domestic mineral raw materials,” wrote ANTAM, as quoted from the company’s Instagram account on Wednesday (8/7/2026).
“This is not just about the processes and results in the industry and market, but also about the nation’s mineral sovereignty. We are no longer merely producing raw bauxite, but providing up to 70 times the added value, the benefits of which can be enjoyed by the entire nation,” added ANTAM.
Meanwhile, the President Director of MIND ID, Maroef Sjamsoeddin, stated that this project plays a strategic role in strengthening raw material supplies, 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 increase in GDP of approximately IDR 71.8 trillion per year,” he explained.
“The construction and operation of these alumina refinery and smelting facilities are strategic programmes with an investment value of IDR 104.55 trillion, or equivalent to US$ 6.23 billion,” he added.
For context, SGAR construction began in 2020 in Mempawah Regency, West Kalimantan. The alumina smelter connects the supply chain between bauxite ore minerals (West Kalimantan) and aluminium smelters (INALUM).