Indonesia is on the brink of having a Smelter Grade Alumina Refinery (SGAR) facility in Mempawah Regency, West Kalimantan. The SGAR plant is owned by PT Aneka Tambang Tbk (ANTM) and PT Indonesia Asahan Aluminium (Inalum).
According to ANTM's President Director, Nico Kanter, the construction progress of the SGAR in Mempawah has reached 85% as of March 2024. He mentioned that the plant is scheduled for commissioning in June 2024.
"Regarding the SGAR project, it has reached 85% completion as of yesterday. The commissioning is set for June (2024), and as for the initial production percentage, I am not yet certain," he stated during ANTM's Media Gathering in Jakarta on Tuesday (March 26, 2024).
As per ANTM's presentation, the SGAR project in Mempawah has a total investment value of up to US$830 million or approximately Rp 13.1 trillion (based on an exchange rate of Rp 15,785 per US$).
This project is a collaboration between ANTM and Inalum, with ANTM holding a 40% ownership stake, while Inalum owns 60% of the plant.
Nico mentioned that upon completion of the construction, Indonesian President Joko Widodo (Jokowi) is expected to attend the commissioning and the plant's first production. "And the president (Jokowi) will come for the commissioning, and our first production will be there," he added.
Furthermore, he stated that the alumina production from the plant will be partially supplied to PT Indonesia Asahan Aluminium (Inalum), and the rest will be exported.
"And where it will be supplied, it will be to Inalum in Kuala Tanjung later on. The plan is to supply part to Inalum and part for export," he emphasized.
Previously, President Joko Widodo (Jokowi) conducted an inspection at the SGAR in Mempawah Regency, West Kalimantan, on Wednesday (March 20, 2024). Jokowi targeted the completion of bauxite processing by June 2024.
"This will be completed by June, this year. Then, full capacity will be at the beginning of 2025," Jokowi said when providing statements to reporters.
Jokowi stated that the majority of bauxite ore is located in West Kalimantan province, necessitating the construction of processing plants in the area.
Once processed into alumina, it will be transported to the Kuala Tanjung area, where aluminum industries are located. "It will be processed there into aluminum, so we no longer need to import. That's the target," he remarked.
Jokowi hoped that after the completion of this processing plant, it would serve as a substitute for imported raw materials, thus retaining foreign exchange reserves within the country.