Indonesian Political, Business & Finance News

Video: Bauxite Smelter Expansion Between Opportunity and Time Bomb, Why?

| Source: CNBC Translated from Indonesian | Mining
Video: Bauxite Smelter Expansion Between Opportunity and Time Bomb, Why?
Image: CNBC

In the midst of increasing global bauxite demand, PT Indonesia Asahan Aluminium (Inalum) views the policy of moratorium on the construction of alumina and aluminium refineries in Indonesia as important. Responding to the discourse on the alumina and aluminium smelter moratorium, the Chairman of the Indonesian Bauxite Association (ABI), Ronald Sulistyanto, considers this proposal excessive given that the bauxite smelter industry is on the path of growth in downstreaming the bauxite sector and new bauxite refining facilities with only three to four smelters operational. ABI assesses that bauxite reserves are sufficient to process refineries for 25-30 years, so processing bauxite into alumina has long been the right path. Several data records show that Indonesia’s bauxite reserves can reach 1.6 billion metric tonnes, but the issue is that the reserve locations in West Kalimantan, Central Kalimantan to Riau are mostly overlapping with plantations and land cultivation rights, thus requiring arrangement of B2B cooperation and supporting regulations. What are the challenges in fulfilling bauxite supply to the refinery? 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).

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