Years of delay over: Inalum targets H2 2024 for alumina refinery operations commencement

Indonesia's state-owned aluminium producer, Inalum, announced on February 15 2024, its intention to commence operations at its long-awaited new smelter-grade alumina refinery in the latter part of 2024. Their official release states that this marks the culmination of years of delays.

In June 2023, the Indonesian government imposed a ban on bauxite ore exports in a bid to encourage the development of a domestic bauxite processing and refining industry aiming to emulate its achievement in enticing foreign investors into nickel processing following a similar prohibition on outbound shipments of unprocessed ore in 2020.

In 2023, Indonesia’s primary aluminium sector is expected to demonstrate moderate growth compared to the previous year, as various reports indicate. The global aluminium industry faced challenges during the year, such as price fluctuations and economic uncertainties, which may have influenced Indonesia’s production and export dynamics.

Despite challenges, there is optimism for future growth in Indonesia’s primary aluminium production, driven partly by the escalating domestic demand for aluminium. Sectors such as construction and automotive are experiencing increased demand, providing potential opportunities for the industry to expand.