National Aluminum Production is Predicted to Reach 2 Million Tons by 2025

By : Ridwan And Aldi Firhand. A | Sunday, February 25 2018 - 19:03 IWST

Director General of ILMATE Kemenperin Harjanto with PT Inalum Budi Gunadi Sadikin (Photo: Humas)
Director General of ILMATE Kemenperin Harjanto with PT Inalum Budi Gunadi Sadikin (Photo: Humas)

INDUSTRY.co.id - Jakarta, the Ministry of Industry continues to drive the increase of national aluminum production, targeting 1.5-2 million tons by 2025.

Therefore, a strategic policy from the government is required to allow existing industries to expand or attract new investments.

"Some of the efforts we have undertaken, among others, focus on creating a conducive business climate, running an industry downstream program to increase added value, and spurring the use of domestic production," said Harjanto, Director General of Metal, Machinery, Transportation and Electronics (ILMATE) Harjanto Jakarta, some time ago.

According to him, the importance of boosting aluminum production is in line with the mandate of Presidential Regulation No. 3 of 2016 on the Acceleration of the Implementation of National Strategic Projects (PSN).

In this case, PT Indonesia Asahan Aluminum (Persero) or Inalum, one of the PSN being accelerated development. Moreover, Inalum bears the essential mandate of the state as the holding company of the holding state-owned mining company.

"We appreciate the completion of the implementation of Inalum project in 2017 that produces aluminum products of 260 thousand tons per year," said Harjanto.

The total capacity, consisting of 90,000 tons ingot alloy production, 30,000 tons aluminum billet, and primary aluminum ingot 140 thousand tons per year. Meanwhile, domestic aluminum demand currently reaches 900 thousand tons per year.

Furthermore, he expressed, one of the strategies to boost the domestic aluminum industry is by applying the SNI that is not yet in the aluminum products to withstand the entry of imported products that do not meet the standards.

"We will also compile databaseproducts that have been made in the country, and control the quantities imported periodically," said Harjanto.

With the addition of Inalum production capacity, it is expected to play a role in reducing the impurity so as to maintain the country's foreign exchange expenditure. "In fact, along with increased value added, will have an impact on job creation," he added.

Meanwhile, President Director of PT Inalum Budi Gunadi Sadikin said Inalum produces about 250,000-260,000 tons of aluminum by 2017. Inalum plans to increase production to 500,000 tons by 2021. "Our increase in 2017 is more than 25 percent compared to 2016," he said. .

In long term, Inalum targets aluminum production to reach two million tons per year. This is supported by the Smelting Plan plant in Kuala Tanjung and the factory in North Kalimantan. The plant in North Kalimantan is targeted to be built by 2020.

Currently, aluminum needs are needed for various sectors, including supporting the construction industry, including supporting transmission in the 35 thousand megawatt project, automotive, shipping, infrastructure and household products.

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