Indonesia’s state-owned mining holding company, MIND ID, has announced that it will focus on five strategic downstream projects in 2025, with an allocated investment of Rp20.6 trillion (US$1.3 billion).
MIND ID President Director, Hendi Prio Santoso, said that company is committed to advancing these projects as part of the government’s efforts to drive progressive economic growth towards achieving the vision of “Golden Indonesia 2045.”
“With this level of investment, we are pushing forward with our downstream programs, which we hope will contribute to the government’s goal of achieving more robust economic growth, targeting a 6-percent to 8-percent growth rate in 2025,” Hendi said as quoted in a press statement on Monday, December 9, 2024.
He emphasized that next year will be a critical period for Indonesia to boost its economic growth performance, with the mining sector playing a key role.
By optimizing the mineral and coal mining industries, these strategic projects are expected not only to increase national competitiveness but also to foster energy independence and foreign exchange savings by processing mineral resources domestically.
The five strategic downstream projects MIND ID will focus on in 2025 are as follows:
- Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan. This smelter is scheduled to ramp up production in the first quarter of 2025, with an annual output target of 1 million tons of alumina.
- Aluminum Smelter Project in Kuala Tanjung, North Sumatra. A new aluminum smelter will be developed by PT Inalum with a target production capacity of 600,000 tons per year. This project is expected to strengthen the domestic aluminum supply chain.
- Nickel Project in East Halmahera. The project includes the construction of a Rotary Kiln-Electric Furnace (RKEF) smelter for nickel production and a High-Pressure Acid Leach (HPAL) facility to support electric vehicle battery materials. The RKEF production capacity will be expanded to 88,000 tons of nickel, while HPAL is expected to produce 55,000 tons of Mixed Hydroxide Precipitate (MHP).
- Copper Smelter and Precious Metal Refinery (PMR) in Gresik, East Java. This project is set to begin operations and increase production by the end of Q3 2025. Additionally, Freeport Indonesia will develop a 270 MW Gas-Fired Power Plant (PLTG), with the initial phase expected to be completed in Q2 2025.
- Coal Infrastructure Development in Tanjung Enim, South Sumatra. MIND ID, through its subsidiary PT Bukit Asam, is working on a strategic partnership with State railway company PT Kereta Api Indonesia and is leveraging river transport to improve coal transportation efficiency, targeting an annual capacity of 20 million tons from the mine site.
