Russia to Build Bauxite Refinery in Indonesia

The Russian aluminium company, Rusal, plans to build a bauxite downstreaming facility in Indonesia. The plan includes processing bauxite into alumina and will be located in Kalimantan.

The Minister of Energy and Mineral Resources, Bahlund Lahadalia, stated that Rusal’s investment is one of the outcomes of discussions between the Indonesian government and Russia following a meeting with President Prabowo Subianto in Moscow in early September 2026.

“They will build downstreaming from bauxite to become alumina, and it will be in the Kalimantan region,” said Bahlil, as reported by CNN Indonesia on Friday (11/9).

According to Bahlil, the government and Rusal are currently finalising the licensing process for the construction of the facility. The investment cooperation will also involve domestic companies.

“Regarding the licensing, it is almost at the final stage, and we are indeed collaborating, and they are entering into partnerships with domestic entrepreneurs,” he explained.

President Prabowo Subianto previously announced Rusal’s investment plans while attending the Eastern Economic Forum (EEF) in Vladivostok, Russia. Prabowo stated that Indonesia has opened cooperation with Rusal, and the aluminium company will enter Indonesia on a large scale to develop processing facilities alongside national business groups.

“Rusal will enter Indonesia on a large scale to develop refineries together with Indonesian groups,” Prabowo said at the Eastern Economic Forum (EEF) in Vladivostok, Russia, on Thursday (4/9).

This cooperation is part of Indonesia’s efforts to strengthen the downstreaming of mineral commodities, particularly bauxite. By processing domestically, the value-add of the commodity is expected to increase before products are marketed to both domestic and global markets.

Prabowo also emphasised that Indonesia remains open to expanding economic relations with Russia across various sectors.

“We are still looking forward to even more cooperation between Russia and Indonesia,” he concluded.

The plan to build a bauxite-to-alumina processing facility simultaneously strengthens the government’s agenda to encourage investment and mineral downstreaming within the country, involving both foreign partners and national business players.