Inalum says bauxite-to-alumina conversion could multiply value and create 130,000 jobs
Inalum explained that processing bauxite into alumina and aluminum can raise its market value manyfold and generate about 130,000 jobs in West Kalimantan.
Inalum’s director of corporate strategy, Arif Haendra, said that converting raw bauxite, priced at $40 per metric ton, into alumina can fetch about $400, a tenfold rise, while further refining into aluminum yields $3,200-$3,500 per ton, an 80-to-87.5-times increase in value. The processing cost for alumina is estimated at $250-$300 per ton, leaving a profit margin of $100-$150 before additional costs. Haendra highlighted the downstream impact in West Kalimantan’s Mempawah District, where the emerging alumina plant is projected to create roughly 130,000 jobs and stimulate tax revenue, port traffic, and ancillary businesses.
He stressed that downstream investments should extend beyond basic alumina and aluminum to products such as aluminum billets for construction profiles, electrical cables, automotive parts, and EV battery materials. The broader strategy aims to diversify Indonesia’s metal industry and capture higher-value market segments.
Why it matters
The plan could dramatically raise Indonesia's export earnings and create a large workforce in a developing region.
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