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INALUM and ANTAM Accelerate Mineral Downstream Strategy, Prepare Phase 2 Development of SGAR in Mempawah
Mempawah, November 25, 2024 - Indonesia’s commitment to advancing downstream mineral processing continues to gain momentum. PT Borneo Alumina Indonesia (PT BAI)—a joint venture of PT INALUM and PT ANTAM Tbk—is currently preparing for the development of Phase 2 of the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan. This strategic project has now entered the Feasibility Study (FS) stage, which serves as a critical foundation for the next phase of development.
Melati Sarnita, Director of Business Development at PT INALUM, stated that the company is currently prioritizing the completion of the commissioning phase for SGAR Phase 1, which is targeted to be fully operational in the first half of 2025. In parallel, preparations for funding strategies and partnerships to support the Phase 2 development are underway.
“Our current focus is to complete the commissioning of SGAR Phase 1 so it can operate stably and meet the growing demand for alumina. At the same time, we are actively exploring financing schemes and engaging potential strategic partners to support the feasibility study for SGAR Phase 2. We aim to reach the Final Investment Decision (FID) within the same year,” said Melati.
A similar sentiment was expressed by I Dewa Wirantaya, Director of Business Development at PT ANTAM Tbk, who emphasized that the completion of the feasibility study is key to ensuring the project's long-term viability across technology, production, and investment dimensions.
“The feasibility study is the cornerstone that will enable us to move forward with the FID process. We are also ensuring that SGAR Phase 1 achieves operational stability, as it will serve as the platform for further development in Phase 2,” Dewa stated during ANTAM’s Annual General Meeting of Shareholders in Jakarta.
SGAR is a strategic national initiative under the Mining Industry Holding, MIND ID. With a production capacity of up to 1 million tons of alumina per year, SGAR Phase 1 was officially inaugurated by President Joko Widodo in September 2024.
The project was designed with a strong focus on environmental sustainability and workplace safety, in support of Indonesia’s goal to become a key player in the global bauxite-to-aluminum supply chain.
Leonard Manurung, President Director of PT Borneo Alumina Indonesia, noted that SGAR Phase 1 is currently in the final stages of commissioning and is projected to enter commercial operation in the first quarter of 2025.
“While finalizing SGAR Phase 1, we—together with MIND ID, INALUM, and ANTAM—are also actively developing the strategy for Phase 2. This includes assessments related to technology, market demand, and sustainability aspects. We hope this project will become an integral part of the national bauxite-to-aluminum value chain,” said Leonard.
The development of SGAR Phases 1 and 2 is expected to not only strengthen Indonesia’s position in the global supply chain but also accelerate the country’s self-reliance in downstream mineral processing. Through strong synergy between PT INALUM, PT ANTAM, and PT BAI, the project stands as a tangible manifestation of Indonesia’s commitment to maximizing the value of its natural resources and enhancing national industrial competitiveness.
For Indonesia, SGAR marks a significant step toward ensuring that the country’s mineral wealth is no longer exported in raw form, but instead processed and utilized to promote national prosperity.