Indonesia has become one of the most significant downstream aluminium product manufacturing hubs in south-east Asia, mostly catering to the automotive industry and thus, has increased the procurement of aluminium scrap for the use in the downstream industry. Countries like Australia, the USA, and the United Kingdom are the major sources of Indonesia's aluminium scrap imports.

Besides a surge in import volume, the country’s import cost is reportedly rising as well, since 2016. Indonesia’s aluminium scrap import cost for procuring 71,029 tonnes had stood at US$90 million in 2016, 6.25 per cent down from US$ 96 million in 2015. In contrast to this, the import cost rose to US$ 119 million in 2017, up 24 per cent from 2016 and 19 per cent from 2015. Along with the cost, 2017 had also witnessed a rise in volume to 91,814 tonnes, 23 per cent up from 2016.

According to the international export-import data, Indonesia is expected to increase its aluminium scrap purchase further to 92,862 tonnes from all around the globe, spending US$142 million. This indicates that although the import volume is estimated to increase by 1.1 per cent, the cost is likely to hike by 19 per cent from the previous year.

The above chart indicates a comparative analysis between Indonesia's aluminium scrap import volume from all around the world & the US.

The above chart indicates a comparative analysis between Indonesia's aluminium scrap import cost from all around the world and the US.

The United States, being one of the major exporters of aluminium scrap to Indonesia, is also likely to increase the volume of scrap export yielding more revenue out if it. In 2016, Indonesia had obtained 27,573 tonnes of aluminium scrap to the US against US$ 35 million, which further increased to 38,011 tonnes in volume and US$50 million in buying cost in 2017. In 2018, the volume is expected to grow to 41,933 tonnes, while the cost to US$ 62 million.

As far as the export is concerned, both volume and revenue is likely to record a year-on-year decline in 2018. In 2017, Indonesia’s aluminium scrap export volume had decreased from 11,551 tonnes, as of 2016, to 10,350 tonnes, with 14 per cent slash in revenue from US$ 16 million in 2016 to US$ 14 million in 2017. According to the latest industry data, the aluminium scrap export volume from Indonesia is expected to hover at 10,216 tonnes and that of the revenue at US$13 million.