Inalum achieves stable outlook, ensures sustainable performance maintenance
PT Indonesia Asahan Aluminium (Persero), known as Inalum, has confirmed its commitment to maintaining sustainable performance after receiving an international credit rating of BBB- with a stable outlook from S&P Global Ratings, which simultaneously strengthens the company’s credibility in the financial market.
Inalum President Director Melati Sarnita stated that this rating achievement serves as both recognition and momentum for the company to continue strengthening its business fundamentals and driving the sustainable transformation of the national aluminium industry.
“This investment grade is both a recognition and a responsibility for Inalum to continue maintaining company performance prudently and sustainably. Amidst our expansion and downstreaming agenda, we will ensure that growth does not merely pursue scale but remains built upon strong operational fundamentals, financial discipline, and robust good governance,” she said in an official statement in Jakarta on Friday.
The rating was assigned by S&P Global Ratings in a report published on 7 September 2026.
The rating agency assessed Inalum’s strategic position within the MIND ID Group and the strong government support provided through MIND ID to the company.
S&P Global Ratings also noted that Inalum plays a vital role in driving bauxite downstreaming and developing the national aluminium value chain, in line with the strategic agenda of MIND ID as a state-owned enterprise to strengthen the integrated mineral and metal industry in Indonesia.
According to Sarnita, this international rating complements the strengthening of Inalum’s credit profile in the domestic market. In August 2026, Pefindo upgraded Inalum’s rating by one notch from idAA-/Stable to idAA/Stable, after the company had maintained an idAA-/Stable rating for the previous three years.
This rating upgrade comes as Inalum prepares to increase funding requirements to support various aluminium downstreaming projects during the 2026-2029 period.
Efficiency is supported by a stable supply of hydro energy and the integration of domestic raw material sources. This cost advantage is considered one of Inalum’s credit strengths and provides the company with resilience against global aluminium price dynamics.
The use of hydroelectric power is also seen as enabling Inalum’s smelter to not only contribute to carbon emission reductions but also support the company’s profitability and production cost efficiency.
Currently, Inalum operates a primary aluminium smelter with a production capacity of approximately 275,000 tonnes per year. Through its majority ownership in PT Borneo Alumina Indonesia (BAI), Inalum has also addressed the dependency on imported alumina raw materials.
BAI operates the Smelter-Grade Alumina Refinery 1 (SGAR 1) in Mempawah, West Kalimantan, with a capacity of approximately 1 million tonnes of alumina per year.
Furthermore, the company’s role is being further strengthened through the development of SGAR 2 and Aluminium Smelter 2 (Smelter 2) as part of the National Strategic Projects (PSN) aimed at strengthening the integration of the national aluminium value chain.
SGAR 2 is planned to add an alumina production capacity of approximately 1 million tonnes per year, thereby doubling the total alumina production capacity.
Meanwhile, Smelter 2 is designed with a production capacity of approximately 600,000 tonnes of aluminium per year. With these additions, Inalum’s total primary aluminium smelter capacity is expected to increase more than threefold compared to its current capacity.