Tuesday, April 16, 2024

Millions tons of bauxite to remain unsold, $7.7 billion in exports at stake

Reading Time: 2 minutes
Audina Nur




The Ministry of Energy and Mineral Resources (ESDM) projects that there will be 13.86 million tons of unsold bauxite domestically from this year’s upstream mining production capacity. This amount equates to export value of US$494.6 million or Rp7.7 trillion.

This projection illustrates the idle capacity experienced by about 80 companies holding domestic bauxite mining business permits (IUPs). The mineral authority calculates the risk of unsold bauxite to be approximately US$494.6 million. Recently, only 15 to 16 IUP-holding companies have been operating with a total production capacity of 13.88 million tons.

“Out of the 80 bauxite IUPs, there were only about 15-16 IUPs in 2023 that were operational because these IUPs are affiliated with the operational Alumina Smelters,” Director of Mineral and Coal Program Development at ESDM, Julian Ambassadur Shiddiq, said on Tuesday, February 13, 2024.

After the moratorium on bauxite exports as of June 10, 2023, the government identified the input capacity of four commercially operational smelters in the country at 13.88 million tons, with smelter grade alumina (SGA) production capacity reaching 4.3 million tons.

“The future bauxite production plan may match the input capacity of the currently operational smelters since there is no relaxation policy for bauxite ore export, which is 14 million tons,” Julian stated.

However, the planned production of 14 million tons could increase with the addition of input capacity from refinery plants in the middle of this year. “This [production] figure could increase if there are additional operational alumina smelters,” he added.

In addition to the joint efforts of Inalum and Antam, there are 7 IUPs currently establishing smelters, including PT Quality Sukses Sejahtera, PT Dinamika Sejahtera Mandiri, PT Parenggean Makmur Sejahtera, PT Persada Pratama Cemerlang, PT Sumber Bumi Marau, PT Kalbar Bumi Perkasa, and PT Laman Mining. These eight new smelter plans have a bauxite input capacity of 27.41 tons and an alumina production capacity of 9.98 million tons. However, Indonesia currently only has one aluminum plant owned by PT Indonesia Asahan Aluminium or Inalum in Kuala Tanjung, with an alumina input capacity of around 500,000 tons annually.

As reported earlier, the Indonesian Association of Bauxite and Iron Ore Entrepreneurs (APB3I) regrets the delayed approval of the Work Plan and Budget (RKAB) for the 2024-2026 period for bauxite mining companies until early this year. Acting Chairman of APB3I, Ronald Sulistyanto, said that the slow approval from the mineral authority has caused dozens of mining companies to cease production.

Ronald mentioned that domestic alumina factories are already requesting raw materials from bauxite miners. “Until today, the approval hasn’t been issued as yet. Currently, only around 10 or 12 bauxite miners have submitted their RKAB, which is very few. Without the RKAB, we cannot operate,” Ronald said on Tuesday, February 13, 2024.

Audina Nur






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.


The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has confirmed that the shortfall in oil and gas lifting throughout the first quarter of 2024 was due to floods and low gas demand from downstream industries. 
PT Pertamina Hulu Energi (PHE) is refining the development scenarios for the GQX oil prospect, which is part of the Offshore North West Java (ONWJ) Block. 
World crude oil prices have risen following Israel’s attack on Iran and subsequent Iran’s counterattack on Israel, with the Brent crude futures being pushed to trade above US$90 after closing 1.1 percent higher on April 10, 2024, while the West Texas Intermediate (WTI) prices approached US$86.
Indonesian telecommunications company, XL Axiata, has asked the government to reduce the Frequency Usage Fees (BHP) to expedite the implementation of 5G networks, a crucial agenda in advancing technology in the country.
PT Bukit Makmur Mandiri Utama (BUMA) has set up a contract with Blackwater Operations Pty Ltd, a subsidiary of Whitehaven Coal Mining Limited, to provide pre-strip mining services at Blackwater mine, a metallurgical coal mine in Australia.
PT Freeport Indonesia (PTFI) aims for its new copper smelter in the Java Integrated Industrial and Port Estate (JIIPE), Manyar, Gresik, East Java, to commence operations in early June 2024.