Antara News·Indonesia·Saturday, September 12, 2026 at 07:36 AM

Indonesia finalizing permits for Rusal bauxite project in Kalimantan

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Aria Ananda, Yashinta Difa

Jakarta (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia confirmed that the permitting process for a major bauxite-to-alumina downstreaming project by Russian aluminum giant Rusal in Kalimantan is nearing its final stage.

“They are going to build a downstreaming facility to process bauxite into alumina. It will be located in Kalimantan. The permitting process is already in the near-final stage," Lahadalia stated in Jakarta on Friday.

He explained that the Indonesian government is collaborating on the project's overall development, while Rusal will partner directly with domestic private companies.

However, the minister has not disclosed the identity of Rusal's local partners or the project's exact investment value, noting that details will be announced once the feasibility study is finalized.

The initiative follows statements by President Prabowo Subianto at the 11th Eastern Economic Forum (EEF) in Vladivostok, Russia, on Sept. 3, where he highlighted large-scale cooperation with Rusal as part of Indonesia's broader push to accelerate domestic mineral refining.

The ESDM Ministry designated 18 downstreaming projects as national priorities for 2026, representing a combined investment value of approximately Rp618 trillion ($35.11 billion) across strategic commodities, including bauxite and nickel.

Indonesia currently operates a Smelter Grade Alumina Refinery (SGAR) Phase I in Mempawah, West Kalimantan, with a capacity of 1 million tons of alumina per year.

The government continues to bolster the ecosystem, having re-included the expansion of the Mempawah alumina and bauxite smelter as a strategic priority in April 2026.

The move comes amid surging capital inflows into the sector. Data from the Investment and Downstreaming Ministry shows that realized investment in bauxite downstreaming surged 193 percent quarter-on-quarter in Q2 2026 to Rp40.1 trillion ($2.28 billion), up from Rp13.7 trillion ($778.41 million) in Q1.

During Q2 2026, bauxite outpaced all other commodities in downstream investment realization, eclipsing nickel at Rp29.4 trillion ($1.67 billion) and copper at Rp16.7 trillion ($948.86 million).

Total downstream investment for the quarter reached Rp152.7 trillion ($8.68 billion), accounting for nearly 30 percent of the quarter's Rp511.8 trillion ($29.08 billion) total national investment.

In the first half of 2026, overall downstream investment realization hit Rp300.1 trillion ($17.05 billion), representing roughly 29.7 percent of Indonesia's total national investment intake of Rp1,010 trillion ($57.39 billion).

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