Indonesia’s Inalum to cooperate with electricity generator PLN for strengthening the national aluminium industry

The Indonesian state-owned company specialized in aluminium smelting, PT Indonesia Asahan Aluminum (Persero) or Inalum will cooperate with PT PLN (Persero) to perceive its obligation to progress the national aluminium industry to a more advanced stage, innovative and competitive level.

On 18^th November 2021, Danny Praditya, Inalum's Director of Operations and Portfolio during a specific working visit of Commission VII DPR RI to the Inalum Power Plant (PLTA) area in Paritohan, Toba Regency, North Sumatra, said the metal aluminium has enormous potential both in terms of resources and market in Indonesia and globally.

"This potential must be utilized as much as possible by Inalum with innovation and collaboration with various parties, one of which is PT PLN (Persero) to increase the supply of electrical energy to increase Inalum's existing production capacity," he provided a written statement in Jakarta on 19^th November 2021.

Presently, Inalum is working on a reduction furnace technology upgrading project, optimization of the Kuala Tanjung smelter, construction of a smelter grade alumina refinery in Mempawah, and construction of aluminium remelt.

However, it is anticipated that these strategic projects will make Inalum able to fulfil the needs of the aluminium market and can boost a more modern national industrial sector.

Muhammad Iqbal Nur, the Regional Business Director of PT PLN (Persero) Sumatra and Kalimantan expressed his readiness to synergize and collaborate with Inalum to realize down-streaming, industrialization and sustainable benefits for Indonesia.

"PLN as one of the SOEs engaged in energy supply supports and is ready to synergize and collaborate with Inalum to increase production capacity as well as our step to be able to contribute as much as possible to the industrial sector and society in Indonesia," he said.

Rida Mulyana, the Director-General of Electricity at the Ministry of Energy and Mineral Resources, said: “We will continue to encourage strategic steps from industry players, especially SOEs to synergize, accelerate down streaming, and increase the use of new and renewable energy (EBT) in each of its operational activities.”

This step is believed to be able to accelerate the vision of down-streaming the national industry.

"We also encourage SOEs engaged in the industrial sector to continue to utilize and develop EBT as Indonesia's commitment to developing a green economy and transitioning fossil energy to new and renewable energy," Rida explained.

Sugeng Suparwoto, the Chairman of Commission VII DPR RI said: “The mining holding company needs synergy and collaboration with other SOEs to accelerate national economic development.”

Lamhot Sinaga, Member of Commission VII DPR RI said: “Inalum continues to show its commitment to be a mainstay to create progress in aluminium down-streaming and industrialization in the modern era.”

"Inalum's vision to become a big player in the national and global aluminium market must be supported by all stakeholders because Inalum is the only aluminium smelting and processing company owned by Indonesia. 500,000 tonnes per year," he said.