Mining company PT Adaro Minerals Indonesia (ADMR) has projected that its aluminium smelter project, developed through subsidiary PT Kalimantan Aluminium Industry (KAI), will begin phased operations by the end of 2025, signaling the potential for dividend distribution from the 2025 financial year, supported by positive catalysts from the smelter’s operations.
“The aluminium smelter under construction will enter its first pot operation stage by year-end,” ADMR Director, Mahardika Putranto, said as quoted in a disclosure to the Indonesia Stock Exchange (IDX) on Thursday, September 18, 2025.
Once completed, the smelter will have an initial production capacity of up to 500,000 tons of aluminium ingots per year, with plans to gradually expand to 1.5 million tons annually in subsequent development phases.
Construction progress has reached the final stage of main steel structures, installation of key potroom equipment, anode systems, and supporting facilities. Jetty loading and unloading equipment has also been installed, while worker housing is largely complete.
To support the project, ADMR’s subsidiary PT Alamtri Indo Aluminium (AIA) injected fresh capital into KAI. On June 30, 2025, AIA increased its investment by Rp947.49 billion (US$57 million), acquiring 947,497 new shares. In total, AIA has committed up to Rp4.91 trillion in equity.
Located in the Kalimantan Industrial Park Indonesia (KIPI) in North Kalimantan, the project aligns with the government’s downstreaming policy and addresses the domestic aluminium supply gap. While ADMR’s core business remains coal mining and trading, its expansion into aluminium smelting is expected to support manufacturing, renewable energy, and electric vehicle industries − reinforcing its role in Indonesia’s National Strategic Projects (PSN).
Alongside the smelter’s promising outlook, management is considering dividend payments for 2025. “Management will assess the company’s ability to distribute dividends to shareholders annually,” Mahardika noted. However, he emphasized that debt repayment and capital expenditures remain top priorities before dividend distribution.
ADMR, which listed on the IDX in 2022, paid its first dividend from 2024 earnings, distributing Rp47.82 per share with a 4.64 percent yield. The payout came from a net profit of US$436.6 million in 2024, slightly down 0.99 percent from US$441.02 million in 2023.
ADMR shares gained momentum after the smelter update, rising 3.30 percent over the past week. In comparison, shares of group peers PT Adaro Energy Indonesia (ADRO) fell 1.19 percent, while PT Adaro Andalan Indonesia (AADI) slipped 0.71 percent.
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