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Indonesia looks to UAE to develop 'green aluminum' industry
Indonesia still lacks the aluminum smelters and alumina refineries needed to support its downstream vision.
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Inalum employees prepare aluminum bars at a factory in this undated photograph. (JP/Apriadi Gunawan)
T
he government sees firms from the United Arab Emirates as potential partners to develop the downstream aluminum industry and build renewable energy projects in Indonesia, an Investment Ministry official said on Monday.
Investment Ministry senior advisor Pradana Indraputra said he hoped the UAE would increase investment in the downstream and renewable energy sectors, including in "green aluminum", which global industry needed, including for automobile production.
One of the prospective UAE firms was Emirates Global Aluminium (EGA), he noted, citing its as one of the world’s largest aluminum producers.
“EGA is engaging with state-owned aluminum producer PT Indonesia Asahan Aluminium [Inalum] and some private companies to establish an aluminum [smelter],” Pradana told reporters on the sidelines of an event hosted by the Dubai International Chamber on Monday in Jakarta.
Pradana added that he was “not sure” about the planned location of the smelter but hoped it would be built in Sumatra or Sulawesi. He also declined to disclose the estimated investment needed for the project.
The International Aluminum Institute predicts that demand for aluminum could rise 80 percent by 2050 from a 2018 baseline demand of 95 million metric tonnes with solar and wind energy, electric vehicles and sustainable packaging driving the demand, according to S&P Global.
However, there are only two aluminum smelters in Indonesia, with a combined production capacity of 500,000 tonnes a year, half of which is bound for export, according to Industry Ministry data.
