Commitment of INALUM to Develop National Aluminium Industry Cluster

Jakarta, 9 December 2021 – INALUM Operating, part of the MIND ID, the Holding State-Owned Enterprise for the Mining Industry, is committed to the development of the national aluminium industry cluster.  Through its subsidiary, PT Indonesia Aluminium Alloy (IAA), the Company will produce secondary aluminium billets at a rate of 50,000 tons per year, in stages, and in future, various extrusion aluminium products as derivatives.

The initiative is marked by the groundbreaking of the Revamping/Engineering Procurement Construction (EPC) of the secondary aluminium billet smelting plant at Kuala Tanjung, Batu Bara Regency, North Sumatera, on Wednesday 8 December 2021.  The revamping project is undertaken by a collaboration between IAA and the PT Rekayasaa Industry and KSO Asahan Citra Win Contractor Consortium.

MIND ID’s Director of Operations and Portfolio, Danny Praditya, said that “The initiative to raise the added value from the aluminium processing has a strategic role in developing the aluminium industry cluster in Indonesia.  Raising the capacity of 50,000 tons per year supports the needs for aluminium and development of the national aluminium industry cluster.

The Company has set the target for the completion of the aluminium billet production facility revamping for full operations in quarter IV of 2022, targeting the domestic as well as global market.  In future, IAA will not only develop the downstream industry, but also the aluminium industrialization.

In its production, IAA will use scrap raw materials which is a recycling process of used aluminium material.  “The energy consumption required in the aluminium recycling process would only be 5% of the primary aluminium process (electrolyte process).  This has made aluminium as an environmentally friendly material, as the recycling process would be the same as conserving energy up to 95%,” said Danny.

The MIND ID Group, in managing Indonesia’s mineral commodities, continues to implement the mandate given by the Government, namely managing strategic mineral resources, downstreaming the industry and becoming a world class company, while paying due observance to sustainability aspects through the use of renewable energy.

On MIND ID

The Mining Industry Holding was officially formed on 27 November 2017, with PT Indonesia Asahan Aluminium (Persero) as the holding company with majority shares in four largest mining companies in Indonesia, PT Aneka Tambang Tbk, PT Bukit Asam Tbk, PT Timah Tbk and PT Freeport Indonesia.

On 17 August 2019, the Mining Industry Holding was transformed into MIND ID (Mining Industry Indonesia) to differentiate the functions of INALUM as Holding and as Operational company.

On PT Indonesia Aluminium Allow (IAA)

PT Indonesia Aluminium Alloy (IAA) is a subsidiary of PT Indonesia Asahan Aluminium (Persero) which was incorporated on 22 May 2020.  The company is engaged in the aluminium midstream and downstream industry sector, specifically responsible for the revamping project and producing secondary aluminium billets.

For more information, please contact:

Heri Yusuf

SVP Corporate Secretary
PT Inalum (Persero) Holding Industri Pertambangan

Email: heri.yusuf@mind.id

www.mind.id