S&P Global Ratings Assigns INALUM a 'BBB-' Rating, Affirming the Company's Strategic Role in National Aluminium Downstreaming

Jakarta, Sept 10^th 2026 – PT Indonesia Asahan Aluminium (Persero) or INALUM, has been assigned an international credit rating of 'BBB-' with a Stable Outlook by S&P Global Ratings. The rating establishes INALUM's investment-grade standing and marks a significant milestone in strengthening the Company's credibility across domestic and international financial markets in support of its future growth.

In its report published on 7 September 2026, S&P Global Ratings pointed to INALUM's strategic position within the MIND ID Group and to the strong support the Government extends to INALUM through MIND ID. S&P Global Ratings also views INALUM as playing a key role as a driver of bauxite downstreaming and of the development of the national aluminium value chain, in line with MIND ID's strategic agenda to strengthen Indonesia's integrated minerals and metals industry. The close linkage with MIND ID, both strategic and financial, further reinforces INALUM's credit profile and underpins the continuity of the Company's business development and investment program. The stable outlook reflects S&P Global Ratings' expectation of sustained operating performance and cash flow at INALUM, together with consistent support from MIND ID in underpinning INALUM's strategic role in the development of the national aluminium industry.

The international rating complements the strengthening of INALUM's credit profile in the domestic market. In August 2026, PEFINDO upgraded INALUM's rating by one notch, from idAA-/Stable to idAA/Stable, after the Company had held idAA-/Stable for the preceding three years.

The international rating and the domestic upgrade come as INALUM prepare for increased funding requirements to support a range of aluminium downstreaming projects over the 2026–2029 period.

Operating Cost Advantage and Hydropower Reinforce INALUM's Competitiveness

In its assessment, S&P Global Ratings also highlighted INALUM's competitive operating cost structure. The Company operates in the first quartile of the global cost curve, relative to the 2026 industry average.

That efficiency is underpinned by a stable supply of hydroelectric power and by integrated domestic raw material sourcing. This cost advantage is regarded as one of INALUM's credit strengths and provides the Company with resilience against movements in global aluminium prices.

S&P Global Ratings further noted that the use of hydroelectric power at INALUM's smelter not only contributes to lower carbon emissions but also supports the Company's profitability and production cost efficiency.

INALUM currently operates a primary aluminium smelter with production capacity of approximately 275 thousand tonnes per annum. Through its majority ownership in PT Borneo Alumina Indonesia (BAI), INALUM has successfully overcome its dependence on imported alumina feedstock. BAI operates Smelter-Grade Alumina Refinery 1 (SGAR 1) in Mempawah, West Kalimantan, with capacity of approximately 1 million tonnes of alumina per annum.

Strengthening the National Aluminium Value Chain

S&P Global Ratings considers INALUM's strategic position within the MIND ID Group's integration and aluminium downstreaming agenda to provide a firm basis for continued parent support. That role is further reinforced by the development of SGAR 2 and Aluminium Smelter 2 (Smelter 2) as part of the National Strategic Projects, which strengthen the integration of the national aluminium value chain.

The development of these projects is also backed by the Company's shareholders, through both strategic partnership and capital support, reflecting the importance of these projects to the strengthening of the national aluminium industry.

INALUM's project pipeline comprises SGAR 2 and Smelter 2. Both are designated National Strategic Projects. SGAR 2 is planned to add approximately 1 million tonnes per annum of alumina production capacity, thereby doubling the Company's existing alumina capacity. Smelter 2, in turn, is designed with a production capacity of approximately 600 thousand tonnes of aluminium per annum, which would lift INALUM's total primary aluminium up to more than three times its current level. The development of these projects also has the potential to raise INALUM's capacity and revenue potential significantly through 2030.

Supportive industry conditions are expected to underpin INALUM's performance over the next one to two years. Aluminium prices are expected to remain supportive amid tight global supply, while stable sales volumes from the existing smelter will help support growth in the Company's EBITDA.

President Director of INALUM, Melati Sarnita, said that what the Company has achieved is both a recognition and a source of momentum to continue strengthening its business fundamentals and to carry through the transformation of the national aluminium industry on a sustainable basis.

"This investment grade is both a recognition and a responsibility for INALUM to continue managing the Company's performance in a prudent and sustainable manner. Amid our expansion and downstreaming agenda, we will ensure that growth is not merely a pursuit of scale, but remains built on strong operational fundamentals, financial discipline, and sound and robust governance. With MIND ID's support, we will continue to strengthen the national aluminium value chain from upstream to downstream. The development of SGAR 2 and Smelter 2 is intended not only to increase capacity, but also to strengthen raw material self-sufficiency and the competitiveness of the national aluminium industry, as well as to create long-term value for Indonesia." Melati said.

Going forward, INALUM will continue to balance growth, financial discipline and operational excellence. Through an increasingly integrated aluminium value chain, INALUM is committed to strengthening the competitiveness of the national industry, reducing import dependence, and sustainably increasing the value added of Indonesia's mineral resources.