Indonesia's aluminium industry is on the cusp of significant growth, thanks to the country’s abundant natural resources and strategic partnerships with global industry leaders. One such partnership is the ongoing collaboration between Indonesia and Emirates Global Aluminium (EGA), one of the world's largest and most advanced aluminium producers. Recently, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, met with Abdulnasser Ibrahim Saif Bin Kalban, the CEO of EGA, to discuss expanding aluminium production in Indonesia. This meeting, which took place during the World Government Summit 2025 in Dubai, highlights the potential of this sector to significantly contribute to the country’s economic growth.

Indonesia's Aluminium Industry Potential

Indonesia is well-positioned to become a key player in the global aluminium market. The country is rich in bauxite reserves, which are essential for aluminium production. The availability of these raw materials, coupled with Indonesia's strategic location in Southeast Asia, provides a strong foundation for expanding the aluminium industry. During his meeting with Airlangga Hartarto, Abdulnasser Ibrahim Saif Bin Kalban emphasized the importance of leveraging Indonesia’s natural resources and conducting detailed feasibility studies. These studies are crucial to ensuring that Indonesian aluminium products are not only competitive in the global market but also efficient and sustainable.

Indonesia’s aluminium industry potential is further underscored by the country’s commitment to advancing infrastructure and technology in the sector. The government recognizes the importance of developing smelting operations and creating an environment that is conducive to international partnerships, such as the one with EGA.

EGA's Technological Expertise and Role in the Expansion

Emirates Global Aluminium (EGA) brings invaluable expertise to Indonesia’s aluminium industry. As one of the world’s largest producers of premium aluminium, EGA is at the forefront of smelting technology. The company has developed advanced techniques for producing aluminium with lower energy consumption and a reduced environmental footprint. EGA’s success in implementing these technologies in its own operations positions them as a valuable partner for Indonesia, where the demand for energy-efficient production methods is growing.

The collaboration between EGA and PT Indonesia Asahan Aluminium (Inalum) is already making strides in expanding aluminium production in Indonesia. A key initiative in this partnership is the pilot project that uses EGA’s advanced technology to upgrade the smelting processes at Inalum’s Kuala Tanjung smelter. This project aims to enhance production efficiency by 10%, a significant improvement that will contribute to both Indonesia's industrial capacity and global competitiveness. This partnership also aligns with Indonesia's broader environmental goals, as EGA is committed to utilizing clean energy solutions, such as solar power, in its smelting operations.

Challenges and Future Prospects

Despite the promising collaboration, the expansion of aluminium production in Indonesia faces some challenges. One of the primary issues identified by Abdulnasser Ibrahim Saif Bin Kalban is the cost and supply of electricity, especially for producing green aluminium. To produce aluminium sustainably, it is crucial to use low-carbon electricity, which remains a challenge in certain regions of Indonesia. The cost of this electricity, as well as the infrastructure needed to supply it, must be addressed for the collaboration to reach its full potential.

Minister Airlangga Hartarto has expressed his commitment to coordinating with Inalum and other stakeholders, such as PLN (State Electricity Company), to resolve these challenges. In addition to addressing energy supply issues, Airlangga emphasized the need for a holistic approach to ensure that the aluminium sector's growth will lead to substantial economic benefits, particularly in terms of job creation and local industry development.

Conclusion

The ongoing discussions between Indonesia and EGA represent a significant step toward boosting Indonesia’s aluminium industry. With Indonesia's natural resources, combined with EGA’s advanced smelting technologies, the partnership promises to increase production capacity, improve sustainability, and enhance Indonesia's competitiveness on the global aluminium stage. Moving forward, careful attention to feasibility studies, energy requirements, and collaborative efforts with local stakeholders will be critical to ensuring the success of this strategic partnership. The potential for economic growth and job creation in Indonesia’s aluminium sector is substantial, and the outcomes of this collaboration could pave the way for future industrial development.