Get Ready! Indonesia Could Reap US$16 Billion Windfall from This Project

President Prabowo Subianto has emphasised that the government continues to push for the downstreaming of natural resources, one of which is the development of the industry to process bauxite into aluminium.

According to the President, downstreaming this commodity can create added value up to dozens of times higher compared to selling bauxite in its raw form. He cited the development of an integrated aluminium industry within the country, ranging from processing bauxite into alumina and alumina into aluminium, as a primary example.

“For example, if we build aluminium smelters in Indonesia, converting bauxite to alumina and alumina to aluminium, the increase is extraordinary—some are 32 times, others are 66 times. And we are working on all of this,” stated Prabowo during a dialogue with senior journalists and experts at Padepokan Garuda Yaksa, Hambalang, Bogor Regency, West Java, on Sunday (6/9/2026).

Prabowo projected that bauxite downstreaming could provide significant economic value for Indonesia. By 2030, for instance, the value generated from bauxite processing is expected to reach between US$15 billion and US$16 billion.

Furthermore, the development of the bauxite downstreaming industry is expected to require substantial investment. Prabowo estimated that the required investment for this industry could reach US$26 billion and is set to create 229,000 new jobs.

“Our bauxite reserves are the sixth largest in the world. Converting bauxite to aluminium, as a building material, offers a 36.9 to 40-fold increase in added value that currently does not exist in Indonesia! This is our strategy, this is our goal,” said Prabowo.