South Korean automotive giant to invest in Indonesian aluminium smelter project

The company engaged in the mining and trading metallurgical coal, PT Adaro Minerals Indonesia Tbk (ADMR) stock value zoomed on 11th August 2022, after reportedly the news floated the possibility of investment from the giant South Korean automotive company, Hyundai.

Citing data from the Indonesia Stock Exchange, ADMR's shares rose 4.27 per cent or 70 points to 1,710. Throughout 2022, the issuer, just listed on the stock exchange on 3rd January 2022, has recorded growth of up to 1,600 per cent.

Share prices of the company increased after it reported that Hyundai, a leading automotive company from South Korea, was planning to invest in a Greenfield aluminium smelter project in Indonesia. Garibaldi Thohir serves as Chairman of the Green Industrial Estate Consortium, building the industrial area for PT Kalimantan Industrial Park Indonesia.

However, related to the possibility of the estimated investment from Hyundai, ADMR has not provided more detailed information. Meanwhile, the smelter project under PT Adaro Aluminum Indonesia has an investment value of US$728 million or around Rp10.4 trillion.

Thohir said that the development of the aluminium industry is one of Adaro's focuses in the future.

"In 2023, we will focus on how to execute the projections well, and we hope that in 2024 will realize it," he explained.

Thohir is also optimistic that the aluminium industry will advance in the future, especially in using electric vehicles. He says the body and frame of electric cars are already made from aluminium.