Visit INALUM Smelter in Kuala Tanjung, Wamen 1 BUMN Supports National Aluminum Industry Development Program

Batu Bara, 5 February 2022 – PT Indonesia Asahan Aluminum (Persero) received a visit from Deputy Minister I of the Indonesian Ministry of BUMN Pahala Nugraha Mansury at the Aluminum Smelter Factory in Kuala Tanjung, Batu Bara Regency, North Sumatra. The visit was received directly by the Director of Business Development of PT Indonesia Asahan Aluminum (Persero). The visit was part of the Ministry of BUMN's initiative to check the readiness of PT INALUM (Persero) in carrying out business development to meet national aluminum needs.

Deputy Minister I of the Ministry of BUMN Pahala Nugraha Mansury expressed his support for PT INALUM (Persero) in carrying out corporate actions as a strategic step in creating downstream and ecosystem for the national aluminum industry. During this visit, he mentioned that collaboration between BUMNs was needed so that the existence of BUMNs in Indonesia could feel the benefits and contributions to Indonesia.

"The Ministry of BUMN in general fully supports the steps taken by INALUM as the first and only aluminum smelting and processing company in Indonesia to take the necessary steps as an effort to meet national aluminum needs. "We hope that this strategic step can collaborate across state-owned companies so that results can be maximized, and the benefits can be immediately felt by the state, both in terms of tax contributions and benefits for society," said Pahala Nugraha Mansury.

PT Indonesia Asahan Aluminum (Persero) Business Development Director Dilo Seno Widagdo said that currently PT INALUM (Persero) is carrying out various innovations and breakthroughs to meet national aluminum needs. According to Dilo, currently the national aluminum supply demand in Indonesia still cannot be met optimally by INALUM. Therefore, several strategic steps are needed both in terms of infrastructure and in terms of energy availability to be able to make this happen.

"The national aluminum industry currently still has great potential and it can be seen from the supply-demand gap that there is still a big gap. Therefore, innovation from INALUM's business development is absolutely necessary. For example, we are currently in the process of increasing production, namely by optimizing the Kuala Tanjung smelter, the Reduction Furnace Technology Upgrading Project, or the construction of the IAA Aluminum Remelt. However, this is not enough because to develop a larger aluminum smelter with maximum production, the company needs to encourage the availability of more continuous and sustainable energy. "We are currently exploring steps for energy availability in collaboration with PT PLN (Persero)," said Dilo.

Currently PT Indonesia Asahan Aluminum (Persero) as the company appointed as the holding company for the state-owned mining industry is carrying out several strategic corporate actions, including the Reduction Furnace Technology Upgrading Project, Optimizing the Kuala Tanjung Smelter, Construction of a Smelter Grade Alumina Refinery in Mempawah, and Construction of IAA Aluminum Remelt . It is hoped that this strategic project will enable INALUM to meet the needs of the aluminum market which still has great potential in Indonesia and the region. Apart from that, INALUM is also taking various collaborative steps with other state-owned companies such as PLN in order to create energy availability.