Video: Bauxite Reserves Hindered by HGU, Refinery Expansion at Risk?

In the midst of increasing global bauxite demand, PT Indonesia Asahan Aluminium (Inalum) views a moratorium policy on the development of alumina and aluminium refineries in Indonesia as crucial. Responding to discussions on this moratorium for alumina and aluminium smelters, the Chairman of the Indonesian Bauxite Association (ABI), Ronald Sulistyanto, considers the proposal overly excessive, considering the bauxite smelter industry is on a growth path in the downstream sector of bauxite, with new bauxite refining facilities having only 3 to 4 smelters operational. ABI assesses that bauxite reserves are sufficient to support refinery processing for 25-30 years, thus processing bauxite into alumina has long been the appropriate route. Various data record Indonesia’s bauxite reserves at up to 1.6 billion metric tonnes, though the issue lies in the locations of these reserves in West Kalimantan, Central Kalimantan, and Riau, which mostly overlap with plantations and HGU, thereby requiring arrangements for B2B cooperation and supporting regulations. What are the challenges in fulfilling bauxite supply to refineries? For more details, watch the dialogue between Serliana Salsabila and the Chairman of the Indonesian Bauxite Association (ABI), Ronald Sulistyanto, in Closing Bell, CNBC Indonesia (Monday, 11/05/2026).