Indonesia Partners with global Aluminum Giant EGA for Smelter Development
Table of Contents
- 1. Indonesia Partners with global Aluminum Giant EGA for Smelter Development
- 2. Indonesia’s Aluminum Potential
- 3. Evolving Partnership with Inalum
- 4. Sustainable Solutions for Indonesia’s Aluminum Industry
- 5. Moving Forward
- 6. What are teh main challenges EGA has faced in its partnership with Inalum to expand the smelter in North Sumatra?
- 7. Indonesia Partners with Global Aluminum Giant EGA for Smelter Progress
- 8. Interview with Abdulnasser Ibrahim Saif Bin Kalban, CEO of emirates Global aluminum (EGA)
- 9. EGA’s Vision for indonesia’s Aluminum Potential
- 10. Building on Existing Partnerships: The Inalum Collaboration
- 11. Towards a Sustainable Future for Indonesia’s Aluminum Industry
- 12. The Path Forward: Collaboration and Growth
coordinating Minister for Economic Affairs Airlangga Hartarto and Abdulnasser Ibrahim Saif Bin Kalban, CEO of Emirates Global Aluminum (EGA), recently met to discuss expanding cooperation on aluminum production. The focus of this collaboration is on developing smelters in Indonesia that will process bauxite, a key ingredient in aluminum production.
Indonesia’s Aluminum Potential
Abdulnasser emphasized Indonesia’s critically important potential in the global aluminum industry. “Indonesia is a potential country in the aluminum sector,” he stated. “Therefore, it is necessary to continue to carry out feasibility studies to measure the efficiency of Indonesian aluminum products,” he added during the World Government Summit 2025 in Dubai.
EGA, the world’s largest producer of premium aluminum, already has a footprint in the UAE with smelters in Dubai and Abu Dhabi. The company is a major player in the Arab Emirates association (PEA) outside the oil and gas sector.
Evolving Partnership with Inalum
EGA has a pre-existing Memoradum of Understanding (MoU) with PT indonesia Asahan aluminum (Persero), or Inalum, aimed at expanding production and developing a sustainable, integrated aluminum industry in Indonesia.
While plans to expand the smelter in North Sumatra to 400,000 tons per year were initially agreed upon, the project faced challenges due to Indonesia’s high electricity costs and limited availability of low-carbon power.
Despite thes hurdles, EGA has demonstrated its commitment to technological advancements in aluminum smelting. The company has conducted extensive research and development to implement high-tech solutions at its Kuala Tanjung North Sumatra smelter, with the aim of achieving a production capacity of 400,000 tons annually.
Sustainable Solutions for Indonesia’s Aluminum Industry
Recognizing the importance of sustainability, EGA utilizes solar panels as a source of renewable energy for its aluminum processing operations. The company is actively exploring further alternatives for renewable energy development in Indonesia, aligning with the Indonesian government’s focus on promoting renewable energy sources, including hydro power, geothermal energy, and new technologies like hydrogen, nuclear, and battery storage.
“With the ability and advanced technology that we use and the potential of natural resources owned by Indonesia will produce the best alumina in large quantities,” Abdulnasser added, expressing confidence in Indonesia’s potential to become a major player in the global alumina market.
Moving Forward
Minister Airlangga has pledged to coordinate with Inalum and other relevant stakeholders to accelerate the implementation of the previously agreed-upon cooperation. He recognized the need for collaboration with PLN, Indonesia’s state-owned electricity company, to develop a reliable supply of low-carbon electricity to meet the energy demands of aluminum production.
Minister Airlangga emphasized that the partnership with EGA should have a significant impact on the Indonesian economy, especially in terms of job creation. He stressed the importance of involving the private sector in Indonesia to ensure the success of this collaboration and its contribution to the country’s economic growth.
What are teh main challenges EGA has faced in its partnership with Inalum to expand the smelter in North Sumatra?
Indonesia Partners with Global Aluminum Giant EGA for Smelter Progress
Interview with Abdulnasser Ibrahim Saif Bin Kalban, CEO of emirates Global aluminum (EGA)
indonesia’s vast bauxite reserves and EGA’s expertise in aluminum production have set the stage for a promising partnership. We sat down with Abdulnasser Ibrahim Saif Bin Kalban, CEO of Emirates Global Aluminum (EGA), to discuss the future of Indonesia’s aluminum industry and the role EGA will play in its development.
EGA’s Vision for indonesia’s Aluminum Potential
Archyde: Abdulnasser, EGA sees Indonesia as a key player in the global aluminum industry. What makes Indonesia so critical to this sector?
Abdulnasser: Indonesia possesses some of the world’s largest bauxite reserves, which are essential for global aluminum production. The country’s strategic location and access to markets also make it a prime candidate for expanding aluminum smelting capacity. We believe Indonesia has the potential to become a major force in the global aluminum market.
Archyde: What steps are necessary to fully unlock Indonesia’s aluminum potential?
Abdulnasser: We need to continue conducting feasibility studies to evaluate the efficiency and competitiveness of Indonesian aluminum production. This includes analyzing factors like energy costs, infrastructure, and access to raw materials. We also need to ensure that production practices are enduring and environmentally responsible.
Building on Existing Partnerships: The Inalum Collaboration
Archyde: EGA already has a Memorandum of Understanding with Inalum, Indonesia’s state-owned aluminum company. Can you tell us about the progress on your joint projects and the challenges you’ve faced?
Abdulnasser: Our partnership with Inalum is crucial to our success in Indonesia. While initial plans to expand the smelter in North Sumatra faced some hurdles related to electricity costs and its carbon footprint,our commitment to technological advancement and sustainability remains strong. We are invested in driving innovation at our Kuala Tanjung smelter to achieve the target capacity of 400,000 tons annually, while minimizing our environmental impact.
Towards a Sustainable Future for Indonesia’s Aluminum Industry
Archyde: Sustainability is increasingly important in the metal industry. How is EGA contributing to a greener aluminum future in Indonesia?
Abdulnasser: We understand the importance of operating sustainably. At our smelter in Indonesia, we are already utilizing solar panels as a renewable energy source. We are actively exploring further renewable energy solutions, such as hydro, geothermal, and potentially even hydrogen and nuclear power, in alignment with the Indonesian government’s goals. Our aim is to create a model for responsible and sustainable aluminum production in Indonesia.
The Path Forward: Collaboration and Growth
Archyde: How crucial is government support and collaboration with the private sector for the success of this partnership?
Abdulnasser: Strong government support is critical to the success of this partnership. Minister Airlangga’s commitment to coordinating with stakeholders and ensuring a reliable supply of low-carbon electricity through collaboration with PLN is essential. The involvement of the private sector is also vital to driving innovation, investment, and job creation in the Indonesian aluminum industry.
Archyde: What are your hopes for the future of Indonesia’s aluminum industry in the global market?
Abdulnasser: I believe Indonesia has the potential to become a leading supplier of high-quality alumina in the global market. With the right investments, technological advancements, and a commitment to sustainability, Indonesia can establish itself as a major player in the aluminum industry for decades to come. We at EGA are proud to be a part of this exciting journey.