INALUM Plans to Produce 500 Thousand Tons of Aluminum in North Kalimantan

The potential for electrical energy is an attraction for INALUM to expand its business in North Kalimantan by building a smelter which is predicted to produce 500 thousand - 700 thousand tons of aluminum per year.

INALUM's seriousness to invest in the Tanah Kuning International Port and Industrial Estate (KIPI), Bulungan Regency, North Kalimantan is increasingly evident with the direct presence of INALUM's President Director, Winardi during the working visit of the Minister of BUMN, Rini Soemarno in Tanjung Selor (10/10) accompanied by other BUMN ministry top officials; Imam Apriyanto (Secretary of the Ministry) and several BUMN Ministry Deputies: Pontas Tambunan, Edwin Hidayat Abdullah and Fajar Harry Sampurno.

Winardi said "There is hydropower potential here, INALUM will run with the hydropower progress. It is estimated that the smelter will operate in the range of 2023 - 2024, because building hydropower also takes a long time and later we will buy electricity".

According to INALUM's calculations, the investment to build a smelter in North Kalimantan is estimated to cost ± USD 2.5 Billion assuming that the hydropower plant is built by INALUM itself. But if the investor for hydropower already exists, then we can save around U$D 700 Million, explained Winardi who was accompanied by Dante Sinaga, Arfan Iqbal Hrp and Joko Hadmono.

"In addition to completing licensing documents, INALUM is also waiting for the determination of the North Kalimantan spatial plan, yesterday we sent a team to coordinate and conduct an initial survey to Tanah Kuning", added Winardi.

As is known, previously INALUM Commissioner, Chairuman Harahap together with the Director of Operations and Business Development, S.S.Sijabat had met with the Governor of North Kalimantan as well as conducting a review of the KIPI location plan in Tanah Kuning and Mangku padi (04/10).

"INALUM has coordinated with PT Kayan Hydro Energi last week", explained Irianto Lambrie (Governor of North Kalimantan) on the sidelines of the presentation of investment potential in North Kalimantan, at a joint dinner in the governor's room.

"They (red. INALUM) plan to have an office in Tanjung Selor in early 2017", added Irianto.

The next day (12/10), the INALUM Team led by Dante Sinaga stayed in touch and held a meeting with the Regent of Bulungan, H. Sudjati, SH in Tanjung Selor accompanied by Isnaini (Head of Bappeda Bulungan) and Hermawan (Head of the Integrated Investment and Licensing Agency of North Kalimantan Province) to discuss and explain INALUM's investment plans and the construction of a Representative Office in Tanjung Selor.