Prabowo States Indonesia Could Gain US$16 Billion Windfall from This Project

President Prabowo Subianto has set a target for the development of bauxite downstreaming into aluminium, which could provide an economic value of up to US$15-16 billion by 2030. The development of this industry is part of the government’s strategy to increase domestic value-add.

Prabowo stated that the government is currently encouraging the integrated development of the bauxite processing industry, moving from bauxite to alumina, and subsequently from alumina to aluminium.

“For example, if we build aluminium smelters in Indonesia, converting bauxite to alumina and alumina to aluminium, the increase is extraordinary—some by 32 times, others by 66 times, and we are currently working on all of these,” he said during a dialogue with senior journalists and experts at Padepokan Garuda Yaksa, Hambalang, Bogor Regency, West Java, on Sunday (6/9/2026), as reported by CNBC Indonesia on Wednesday (16/9/2026).

He estimates that bauxite downstreaming could generate an economic value of approximately US$15-16 billion by 2030. To realise this potential, Prabowo noted that the government anticipates an investment requirement of US$26 billion.

“An investment of 26 billion dollars will create 229,000 new jobs. Our bauxite reserves are the sixth largest in the world,” he said.

Furthermore, Indonesia possesses significant capital to develop this industry as its national bauxite reserves rank sixth globally.

“Converting bauxite to aluminium for building materials offers a 36.9 to 40-fold increase in value-add that currently does not exist in Indonesia! This is our strategy, this is our goal,” said Prabowo.