Rusal enters Kalimantan, Minister of Energy and Mineral Resources reveals downstreaming progress
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the licensing for the bauxite downstreaming project into alumina by the Russian company Rusal in Kalimantan is almost in its final stage.
“Rusal, yes. They will build downstreaming from bauxite to become alumina. And that is in the Kalimantan region. Regarding the licensing, it is almost at the final stage,” Bлоhl said in Jakarta on Friday.
Bahlil noted that the government is collaborating on the development of the project, while Rusal will work alongside domestic business players.
“We are indeed collaborating, and they are engaging in cooperation with domestic entrepreneurs,” he said.
However, Bahlil has not yet disclosed Rusal’s domestic partners or the total investment value of the project.
“Later, Madam, I will finish the Feasibility Study (FS) first,” he added.
Rusal’s investment plan was previously announced by President Prabowo Subianto at the 11th Eastern Economic Forum (EEF) in Vladivostok, Russia, on 3 September 2026.
Prabowo stated that Indonesia is cooperating with Rusal in the field of mining processing, and the company will enter Indonesia on a large scale to develop processing facilities alongside Indonesian business groups.
This plan aligns with the government’s programme to strengthen mineral downstreaming to increase the added value of domestic natural resources.
The Ministry of Energy and Mineral Resources noted that the government has designated 18 downstreaming projects as national priorities for 2026, with an investment value of approximately Rp618 trillion.
These projects cover several strategic commodities, including bauxite and nickel.
The facilities are part of the domestic bauxite downstreaming chain, where the produced alumina will serve as raw material for aluminium production.
The government is also continuing the development of the bauxite downstreaming ecosystem through several follow-up projects.
In April 2026, the government re-included the development of alumina and bauxite smelters in Mempawah as part of a series of strategic downstreaming projects to increase the added value of domestic mineral resources.
Meanwhile, data from the Ministry of Investment and Downstreaming/BKPM shows that bauxite downstreaming investment realisation in the second quarter of 2026 reached Rp40.1 trillion, an increase of 193 per cent compared to the previous quarter’s Rp13.7 trillion.
Overall, downstreaming investment realisation in the second quarter of 2026 reached Rp152.7 trillion, or 29.8 per cent of the total national investment of Rp511.8 trillion.
Throughout the first half of 2026, the Ministry of Investment and Downstreaming/BKPM recorded that downstreaming investment realisation reached Rp300.1 trillion, or approximately 29.7 per cent of the total national investment of Rp1,010 trillion.
Bauxite remains one of the primary mineral commodities supporting downstreaming investment realisation throughout the first half of 2026.