After several efforts to develop the potential of Asahan River which flows from Lake Toba in North Sumatra Province for power generation resulted in failures in Dutch occupation, the Government of Indonesia strongly desired to realize the construction of the hydroelectric power station on the river.
This determination grew stronger when in 1972 the Government received a report on the feasibility study for Asahan Hydroelectric and Aluminium Project from Nippon Koei, a Japanese Consultant. The report said that it would be feasible to construct hydroelectric plants with an Aluminium Smelter as the main consumer of the electricity produced.
On July 7, 1975 in Tokyo, after lengthy negotiations and with economic cooperation from the Japanese Government for the project, the Government of the Republic of Indonesia and 12 Japanese Investors signed a Master Agreement for Asahan Hydroelectric and Aluminium Project, well known as Asahan Project. The Investors were Sumitomo Chemical company Ltd., Sumitomo Shoji Kaisha Ltd., Nippon Light Metal Company Ltd., C Itoh & Co., Ltd., Nissho Iwai Co., Ltd., Nichimen Co., Ltd., Showa Denko K.K., Marubeni Corporation, Mitsubishi Chemical Industries Ltd., Mitsubishi Corporation, Mitsui Aluminium Co., Ltd., Mitsui & Co., Ltd.
Further, for equity participation in a company to be founded in Jakarta, the 12 investors and the Japanese Government established an investment company called Nippon Asahan Aluminium Co., Ltd (NAA) in Tokyo on November 25, 1975.
On January 6, 1976, PT. Indonesia Asahan Aluminium (INALUM), a joint venture company between the Government of Indonesia and Nippon Asahan Aluminium Co., Ltd. was established in Jakarta. INALUM is to construct and operate the Asahan Project, in accordance with Master Agreement. The shareholding ratio between the Indonesian Government and Nippon Asahan Aluminium Co., Ltd. on the establishment of the company was 10% to 90%. In October 1978 the ratio changed to 25% to 75% and since June 1987 it has been 41.13% to 58.87%. The share composition then changed to 41.12% for the Government of Indonesia and 58.12% for NAA Co., Ltd. on February 10, 1998.
To implement the provisions of Master Agreement, the Government of the Republic of Indonesia issued a Presidential Decree No. 5 of 1976 for the establishment of Asahan Development Authority as a representative of the Government responsible for the smooth construction and development of the Asahan Project.
INALUM can be recorded as a pioneer and the first company in Indonesia dealing with an aluminium smelting industry with a huge investment of 411 billion Yen.
In practice, the conversion of Inalum's status from foreign investment company to state-owned enterprise happened on November 1st, 2013, as agreed in Master Agreement. Termination of contract between Indonesian government and Japanese corporation consortia took place on December 9th 2013, and by law Inalum officially declared as state-owned enterprise on December 19th 2013 after Indonesian government took over Inalum's remaining shares that previously owned by the consortia. Inalum was becoming the 141st state-owned enterprise in Indonesia on April 21st, in line with government regulations No.26, 2014.
At the end of 2013 the Government of Republic of Indonesia aimed to take over the whole shares in PT Indonesia Asahan Aluminium and change the status of the company into State-owned Enterprise (BUMN) with 100% of shares owned by the Government. In April 21, 2014, the status of the Company changed into Statedowned Enterprise based on based on Government Regulation No. 26 year 2014 concerning the change of status of PT Indonesia Asahan Aluminium into limited liability company. Followed by the change of the Company’s name into PT Indonesia Asahan Aluminium (Persero) hereinafter abbreviated PT INALUM (Persero).
In 2017, the Government issued Government Regulation No. 47 of 2017 dated November 10, 2017 on Additional Republic of Indonesia Investment into PT Indonesia Asahan Aluminium Equity. Subsequently, on November 27, 2017, the Government signed the handover of the Government’s shares in PT Freeport Indonesia to PT INALUM (Persero), which simultaneously signifies the official establishment of the Holding of Mining Industries with PT INALUM (Persero) as the Holding Company and PT ANTAM Tbk, PT Bukit Asam Tbk, PT Timah Tbk, as well as PT Freeport Indonesia as members of the holding.
To become an environmentally friendly foremost global integrated aluminium based company
We work professionally by implementing the best business practice.
We grow up through sustainable development
We are stronger then expectation through synergistic cooperation
We have responsibility to give the best contribution.
We run our business with integrity.
We are making effort to run profitable business for prosperity.
Three members of Holding Company for Mining Industry (Antam, Timah & Bukit Asam) remain fully controlled by the state through the presence of golden share in the three Holding members.
PT INALUM (Persero) have 4 (four) work location: