EGA signs MoU with INALUM to boost aluminium production in Indonesia, eyes 400,000 tonnes per year

During the World Government Summit 2025 in Dubai, Coordinating Minister for Economic Affairs Airlangga Hartarto met with Emirates Global Aluminium (EGA) CEO Abdulnasser Ibrahim Saif Bin Kalban on Wednesday, February 12. The meeting focused on advancing EGA's cooperation plan to boost aluminium production, mainly through developing a smelter that processes bauxite in Indonesia.

Image Source:  COORDINATING MINISTRY FOR ECONOMIC AFFAIRS OF THE REPUBLIC OF INDONESIA

For this, EGA, the world's largest producer of premium aluminium and the largest industrial company in the United Arab Emirates (UAE) outside the oil and gas sector, has signed a Memorandum of Understanding (MoU) with PT Indonesia Asahan Aluminium (INALUM). CEO Abdulnasser emphasised Indonesia's significant potential as a key player in the aluminium industry, noting that further discussions are necessary to identify potential collaborative projects.

EGA & INALUM's strategic collaboration

EGA's CEO, Abdulnasser Ibrahim Saif Bin Kalban, stated that the company has agreed to collaborate with INALUM to expand the smelter in North Sumatra to a capacity of 400,000 tonnes per year. However, the project has yet to be realised due to high electricity costs and limited access to low-carbon energy, essential for producing green aluminium.

As a leading aluminium smelting and processing company, EGA has developed its own advanced technology for aluminium smelting and conducted numerous studies to apply high-tech solutions at the INALUM Kuala Tanjung Smelter in North Sumatra.

CEO Abdulnasser also shared that EGA uses solar panels to power its aluminium production and is exploring additional clean energy alternatives for development in Indonesia. The Indonesian government is actively supporting the growth of New Renewable Energy (EBT), along with the advancement of hydrocarbons, hydrogen, nuclear, and battery technologies.

In response, Coordinating Minister Airlangga stated that he would coordinate with Inalum to follow up on the previously agreed-upon cooperation. He also emphasised the need for involvement from relevant stakeholders to accelerate the implementation of the commitment to cooperation. Airlangga stressed that the collaboration must impact Indonesia's economy and actively involve the country's private sector.

Image Source: COORDINATING MINISTRY FOR ECONOMIC AFFAIRS OF THE REPUBLIC OF INDONESIA

MoU – promote strategic cooperation

The MoU will help to promote strategic cooperation aimed at expanding production while advancing the development of an integrated and sustainable aluminium industry in Indonesia. Coordinating Minister for the Economy, Airlangga Hartarto, recently met with Abdulnasser Ibrahim Saif Bin Kalban, CEO of Emirates Global Aluminium (EGA), to discuss ongoing collaboration in advancing aluminium production through the development of a bauxite-processing smelter in Indonesia.

Indonesia holds substantial deposits of copper and bauxite—the primary raw material for aluminium—and is the world's largest nickel producer. In an effort to strengthen its mineral processing sector, the government has been actively seeking foreign investment.

Indonesia's strong potential to become a key player

At the recent World Government Summit 2025, Abdulnasser highlighted Indonesia's strong potential to become a key player in the aluminium industry. However, he emphasised the need for further discussions to outline and develop cooperative projects.

"Indonesia is a potential country in the aluminium sector, therefore it is necessary to continue to conduct feasibility studies to measure the efficiency of Indonesian aluminium products. Collaboration is needed with other parties, such as PLN, to develop low-carbon electricity to meet sufficient electricity supply for aluminium production. It needs to be ensured that this aluminium sector cooperation has a big economic impact, especially in job creation. With the advanced capabilities and technology that we use, and the potential of natural resources that Indonesia has, it will produce the best alumina in large quantities," said Abdulnasser.

The Indonesian government has also promoted the development of renewable energy, hydrocarbons, advanced fibre technologies, and emerging innovations such as hydrogen, nuclear energy, and battery technology.