Danantara Indonesia Simultaneously Inaugurates Phase-1 of Six Downstream Projects with Total Investment Value of up to US$7 Billion

Groundbreaking of Bauxite – Alumina - Aluminium Processing and Refining Facility
Jakarta, Friday, 6 February 2026 – BPI Danantara Indonesia (“Danantara Indonesia”) is simultaneously conducting the groundbreaking of six downstream projects in 13 locations in Indonesia, with a total investment value of US$7 billion.  These projects are part of the national economic transformation to strengthen the real sector, raise domestic industrial added value, create employment, and boost sustainable economic growth. As a whole, the project is estimated to absorb more than 6,000 direct employment.

The simultenous inauguration marks the start of Phase I downstream priority projects managed in an integrated, cross sector manner, among which are the energy, food, mineral and metal sectors, as the foundation for strengthening the national industrial structure and reduction of import dependency in stages.

Danantara Indonesia CEO, Rosan Roeslani, stressed that the downstreaming program is a strategic agenda which is the priority of the Indonesian President, while at the same time, one of the main focus of Danantara Indonesia in boosting national economic transformation.

“The first stage of these projects is expected to provide actual positive impact for Indonesia’s economy, through the creation of industrial added value as well as the absorption of workers. In future, these downstream projects are expected to become the backbone of a stronger economic growth that is sustainable, and globally competitive. Through the strong collaboration between the government, State Enterprises, and strategic partners, downstreaming will become an important foundation in strengthening industrial self-sufficiency and push Indonesia towards a more advanced and higher added value economy,” said Rosan.

MIND ID and Members INALUM and ANTAM inaugurate the bauxite – alumina – aluminium refining facility located at Mempawah, West Kalimantan.

The facility consists of the New Aluminium Smelter with a capacity of 600,000 metric tons of aluminium per annum and Fase II Smelter Grade Alumina Refinery with a capacity of 1 million metric tons of alumina per annum.

This project is aimed at supporting Indonesia’s mineral resilience program, as well as the raw material supply for the domestic manufacturing industry sector, as part of the strengthening of the national industrial value chain.

MIND ID, with this national strategic project, is pushing the rise in added value up to 70 times, from bauxite to alumina and aluminium.  This is based on the price of raw bauxite hovering between US$40 per metric ton, increasing to about US$400 per metric ton after processing into alumina and rising again to around US$2,800 – US$3,000 per metric ton after processing into aluminium.

MIND ID President Director, Maroef Sjamsoeddin, said that this project is able to raise the capacity of stronger domestic aluminium production, and shows that Indonesia is increasingly able to reduce the dependency on aluminium import.

He believes that this facility will be able to reduce the level of import dependency and impact on raising foreign exchange reserves. When the new aluminium smelter is operating, it is estimated that foreign exchange reserves will go up 394% from Rp11 trillion to Rp52 trillion per annum. Not only that, domestic manufacturing industry players will be certain of the domestic raw material supply.

“This project is a contribution from the MIND ID Group in creating domestic added value, strengthening the economy and state sovereignty in the mineral sector, for the sake of Indonesia’s future civilization,” Maroef concluded.

Also present at the inauguration is West Kalimantan Governor, Member of Commission XII of the Indonesian House of Representatives (DPR RI), Regent of Mempawah Regency, King of Mempawah XIV, Dayak Customary Council, Members of the Board of Directors and Commissioners of MIND ID, ANTAM, Bukit Asam, INALUM, and PT Borneo Alumina Indonesia.

 

The implementation of these downstream projects is in line with the directives of the Indonesian President to hasten the national economic transformation through the strengthening of the real sector, raising the added value of domestic resources, as well as competitive and sustainable  industrial development. Danantara Indonesia and State Enterprises ensure that these priority projects can be realized in a disciplinary, timely manner and provide actual economic impact.