Adaro Energy signs a letter of intent to invest in an aluminium smelter project in Indonesia

PT Adaro Energy based in Indonesia signed a letter of intent this week to invest in a smelter project to be developed at the Green Industrial Park Indonesia in North Kalimantan province.

Adaro Energy, an Indonesian coal business, said in a statement on Thursday that it aims to build a $728 million aluminium smelter in a new industrial zone on Borneo Island. According to a release, Adaro ENergy signed a letter of intent this week to invest in a smelter project to be developed at the Green Industrial Park Indonesia in North Kalimantan province. The new estate is being developed by PT Kalimantan Industrial Park Indonesia, a group managed by Adaro's President Director Garibaldi Thohir.

The park has been designated as "green" by the government owing to a proposal to power industrial activity there with electricity generated by an 11,000-megawatt hydropower station on the Kayan River. For the smelter, Adaro claimed it will collaborate with domestic and foreign partners, but did not name any. The effort is part of the company's green transformation programme, according to the statement.

"We are optimistic that global demand for aluminium products will keep rising, particularly for cable, battery, and chassis. We also expect that, going forward, other industries, which require aluminium, such as solar panels and electric vehicles, can be produced in this facility,” said Adaro's Vice President Director, Ario Rachmat.