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MIND ID Requires An Investment Of Rp55.35 Trillion To Achieve An Aluminum Production Target Of 1.1 Million Tons

BUMN Holding Industri Pertambangan Indonesia, known as MIND ID, is seeking an investment of approximately US$3.5 billion, equivalent to around Rp55.35 trillion (based on an exchange rate of Rp15,816 per US dollar), to enhance domestic aluminum production to 1.1 million tons annually over the next five years.

Dilo Seno Widagdo, the Director of Portfolio and Business Development at MIND ID, indicated that the production capacity of PT Indonesia Asahan Aluminium (INALUM), a member of MIND ID, currently stands at 275,000 tons per year. Meanwhile, the national demand for aluminum is approximately 1 million tons annually. To mitigate reliance on imports, MIND ID plans to expand the aluminum smelting capacity in Kuala Tanjung, North Sumatra, and establish a new aluminum production facility in Mempawah, West Kalimantan. Dilo stated, "MIND ID is committed to increasing production capacity to meet national needs and reduce dependence on aluminum imports," as reported in an official statement on Friday, December 6, 2024.

He noted that the company is prepared for an investment calculation of about US$1 billion per million tons of alumina production capacity and US$2.5 billion per million tons of aluminum production capacity, leading to a total investment requirement of US$3.5 billion.

Furthermore, he emphasized that MIND ID does not intend to expand into downstream processing for finished products, such as automotive wheels. Instead, MIND ID will concentrate on establishing strategic partnerships with domestic downstream industry players. "We hope to foster active partnerships with downstream industry stakeholders, ensuring that their raw material needs can be met by domestic mineral products, thereby allowing Indonesia to benefit from the added value at every stage of the supply chain," Dilo concluded.

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Tag: BUMN INALUM MIND ID