Wedoany.com Report-Nov. 21, PT Indonesia Asahan Aluminium (Inalum), Indonesia’s state-owned aluminum producer, targets 2029 for the commissioning of a new smelter in West Kalimantan, company chief executive Melati Sarnita announced on Thursday during a parliamentary hearing.

Aluminum smelter.

The facility will have an annual production capacity of 600,000 metric tons and requires an investment of approximately $2.5 billion. Once operational, it will increase Inalum’s total aluminum output from the current 275,000 tons to over 875,000 tons per year.

Melati Sarnita explained that the expansion aims to significantly lower Indonesia’s reliance on imported aluminum, which currently accounts for about 54 percent of domestic consumption.

“Looking ahead, we believe that we can increase our capacity to reduce reliance on imports and strengthen the national aluminum supply chain,” she told parliament members.

Inalum is currently negotiating with potential partners for the project. These include Indonesia’s sovereign wealth fund Danantara and several international companies. A technology provider from China is expected to acquire a minority stake of between 5 percent and 10 percent, though the company’s name was not disclosed.

The smelter will require 1.2 gigawatts of electricity. Power supply arrangements are being finalized with state utility PLN and other providers to ensure stable, long-term energy availability.

In parallel, Inalum is doubling the capacity of its existing alumina refinery. Output of smelter-grade alumina, the primary raw material for aluminum production, is scheduled to rise from 1 million tons currently to 2 million tons annually by 2028. This expansion will secure sufficient feedstock for both the existing plant and the new West Kalimantan facility.

The combined initiatives will substantially strengthen Indonesia’s integrated aluminum industry, from upstream raw material processing to downstream smelting, while supporting greater self-sufficiency in meeting domestic demand across manufacturing and infrastructure sectors.