Building a Multi-Billion Dollar Aluminium Downstreaming Megaproject, Inalum Reveals 2 Key Issues

PT Indonesia Asahan Aluminium (Inalum) has revealed the latest developments on the multi-billion dollar aluminium downstreaming megaproject in Mempawah, West Kalimantan. Inalum’s President Director, Melati Sarnita, stated that the Mempawah aluminium smelter is targeted to have a production capacity of 600,000 tonnes per year. With this addition, Inalum’s total aluminium production capacity will increase to around 900,000 tonnes per year. “The second Mempawah smelter is a transformational project for Inalum because from a capacity of 275,000 tonnes of aluminium, it will become 900,000 tonnes of aluminium by adding a new 600,000-tonne smelter in Mempawah,” Melati said during a Working Meeting with House of Representatives Commission XII, on Monday (13/4/2026). According to her, the project requires an investment of approximately US$2.4 billion with a funding scheme of 60% debt and 40% equity. However, in its implementation, there are two main issues of concern: land acquisition and certainty of long-term energy supply. “The main issues we see are definitely land acquisition, and secondly, long-term energy certainty through the construction and use of PLTU for 30 years. Currently, we are conducting a commercial review of the power solution cooperation with PTBA and MIND ID,” she said. Therefore, to ensure the success of this downstreaming project, Inalum is requesting support from Commission XII of the House of Representatives in terms of governance oversight, strengthening downstreaming regulations, and support for electricity supply facilities. “Of course, we hope for synergy between Inalum, PLN, and related parties, in this case PTBA, to be realised because one of the successes of the Mempawah smelter project is the captive PLTU for the aluminium smelter. Without this support, downstreaming will progress more slowly than the national targets,” she said.