Video: Why Bauxite Downstream Investment Surged, Overtaking Nickel

Jakarta, CNBC Indonesia - Throughout the second quarter of 2026, investment in bauxite downstream processing recorded a growth of 193%, reaching Rp 40.1 trillion, making it the highest realised investment in the downstream sector nationally. Chairman of the Indonesian Bauxite Association, Ronald Sulistyanto, stated that this investment growth trend is inseparable from the support provided by the issuance of Law No. 4/2009, which encourages increased added value in the mineral and coal sector through domestic processing. Investment in bauxite is also driven by global trends in demand for processed bauxite products, namely alumina, to meet the needs of the battery and automotive industries. Currently, bauxite downstream processing is further developing into the processing of bauxite into aluminium.