Chinese tycoons are accelerating the growth of Indonesia’s aluminium industry with multibillion-dollar investments that echo the country’s earlier nickel boom and have the potential to disrupt the global aluminium market.
Facing tightening production limits at home, giants like billionaire Xiang Guangda’s Tsingshan Holding Group, China Hongqiao Group, and Song Jianbo’s Shandong Nanshan Aluminium are shifting their focus to Southeast Asia’s largest economy, pouring capital into new smelters and refineries.
Indonesia’s aluminium industry is on the cusp of dramatic growth, fuelled by both domestic policy shifts and a wave of foreign investment. According to Goldman Sachs, Indonesia’s aluminium output could increase fivefold by the end of the decade.
Currently, as reported by Petromindo.com, Indonesia’s alumina production capacity stands at 4.3 million tonnes per year, primarily supplied by four operational refineries. The country’s primary aluminium production is led by PT Indonesia Asahan Aluminium (INALUM), which produced 274,230 tonnes in 2024.
At present, Indonesia’s aluminium output amounts to approximately 6.38 per cent of its alumina production capacity.
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