Coal Prices Surge Close to USD 140, China and India Scramble for Supply

Coal Prices Surge Close to USD 140, China and India Scramble for Supply

27 May 2026, 18:39 PM
Tsingshan Cuts Nickel Production at Weda Bay for Aluminium
Tsingshan Cuts Nickel Production at Weda Bay for Aluminium
19 May 2026, 18:51 PM
BUMA International (DOID) Records IDR 5.4 Trillion Revenue in Q1 2026
BUMA International (DOID) Records IDR 5.4 Trillion Revenue i...
01 Jun 2026, 18:53 PM
MDKA Begins 3,600-Meter Deep Drilling at Pani Gold Mine, Targeting Additional Resources
MDKA Begins 3,600-Meter Deep Drilling at Pani Gold Mine, Tar...
02 Jun 2026, 13:28 PM
Harita Nickel Records IDR 6.81 Trillion Revenue in Q1 2026
Harita Nickel Records IDR 6.81 Trillion Revenue in Q1 2026
29 May 2026, 13:36 PM
Prabowo Invites Australia to Invest in Nickel-to-Gold Downstreaming
Prabowo Invites Australia to Invest in Nickel-to-Gold Downstreaming
06 Feb 2026, 03:05 AM 835

President Prabowo Subianto has invited Australia to invest in critical mineral projects in Indonesia. These projects include the downstreaming of nickel, bauxite, and gold.The invitation was extended by Prabowo while hosting Australian Prime Minister Anthony Albanese at the Presidential Palace in Jakarta on Friday (Feb 6, 2026).Albanese's visit to Indonesia this time marks his fifth visit as the Prime Minister of Australia.Previously, both countries have engaged in intensive talks to strengthen investment and trade cooperation related to critical mineral projects.“I invite Australia to invest in Indonesia’s critical mineral downstreaming sector, including the processing of nickel, copper, bauxite, and gold,” Prabowo said.Furthermore, Prabowo added that the government is also encouraging national companies to invest in Australia’s critical mineral mining sector.Prabowo added that BPI Danantara is relatively prepared to partner with Australian companies in the critical minerals sector in the future.“Danantara is ready to work with its partners in Australia to explore co-investment opportunities and various other forms of partnership,” he said.Lately, the government has been exploring cooperation to purchase lithium concentrate from Australia to strengthen raw material supplies for the domestic electric vehicle (EV) battery ecosystem.Currently, Indonesia's lithium imports from Australia reach approximately 80,000 tons per year. The plan for more intensive trade and investment cooperation between the two is expected to further drive up the value of these lithium imports.Imports from Australia have historically been used to supply the industrial area in Morowali as raw material for electric vehicle batteries.Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government would open opportunities for additional negotiations to expand cooperation in the critical minerals sector through a trade pact or Comprehensive Economic Partnership Agreement (CEPA) with Australia.“Later, critical minerals will certainly [be included in the agreement]. We are talking about the EV ecosystem. Earlier, President [Prabowo Subianto] also spoke about the EV ecosystem,” Airlangga said at the State Palace on Thursday (May 15, 2025).“Our current target is the CEPA [with Australia]. We are including critical minerals within it.”However, Airlangga did not comment on the possibility of the value and volume of lithium imports from Australia increasing in the future.“We will see, it depends on the factory capacity. Some are expanding. So, specifically for batteries, we have lithium-based and [nickel]-based options."Airlangga added that Indonesia aims for a 100% increase in trade volume with Australia through the CEPA.According to the latest release from the Central Bureau of Statistics (BPS), Indonesia still recorded a trade deficit with Australia reaching US$5.65 billion throughout 2025.Several commodities contributing to that deficit include cereals, mineral fuels, metal ores, slag, and ash.

PPA Implements Indonesia’s First Private Network for the Mining Sector
PPA Implements Indonesia’s First Private Network for the Mining Sector
31 Jan 2026, 05:44 AM 799

PT Putra Perkasa Abadi (PPA) became the first mining services company in Indonesia to deploy a private network through a collaboration with Telkomsel, marking a step forward in accelerating smart-mining solutions for safer, more connected, and integrated industrial operations.The collaboration was signed by R. Teguh Saptosubroto and Adiwinahyu B. Sigit in a memorandum of understanding at the Telkomsel Enterprise Solution Day 2023 in Jakarta on Tuesday.With this initiative, PPA becomes part of Indonesia’s mining-industry digital transformation by adopting leading digital solutions, aligning with Telkomsel’s commitment as a digital ecosystem enabler.“PPA is undertaking this initiative to help accelerate digital transformation in the mining sector toward Indonesia’s Industry 4.0 revolution. We expect it to maximize efficiency and production, while also enhancing safety across PPA’s operations,” Teguh Saptosubroto said.In this collaboration, PPA adopts Telkomsel Enterprise’s smart-mining suite, including the use of a private network, construction of BTS infrastructure to ensure coverage across all PPA operational areas, Infrastructure-as-a-Service (IaaS), and fuel monitoring—delivered over highly reliable and secure connectivity.The collaboration also enables PPA to achieve sub-50-millisecond network latency to support automation across mining activities and operations, as well as real-time monitoring. This includes implementation of an IoT Intelligent Tank Monitoring System (Intank) for fleet-wide fuel monitoring anytime and anywhere, enabling faster decision-making, better day-to-day execution, and more efficient cost management.

ANTAM, IBC, and Huayou Partner to Strengthen Nickel Downstreaming and Build Indonesia’s Integrated...
ANTAM, IBC, and Huayou Partner to Strengthen Nickel Downstreaming and Build Indonesia’s Integrated...
30 Jan 2026, 06:29 AM 1089

Indonesia is steadily cementing its position as a leading player in the global battery industry. PT Aneka Tambang Tbk (ANTAM), PT Industri Baterai Indonesia (Indonesia Battery Corporation/IBC), together with global strategic partner Zhejiang Huayou Cobalt Co., Ltd., have formally reaffirmed a joint commitment to accelerate the development of an integrated battery ecosystem in the country.The commitment is realized through the signing of a Framework Agreement (FA) as an initial framework to speed up the Nickel Downstreaming Program and investment in a nationally integrated battery ecosystem.This strategic collaboration involves HYD Investment Limited, a consortium formed by Zhejiang Huayou Cobalt Co., Ltd. and EVE Energy Co., Ltd., as well as PT Daaz Bara Lestari Tbk. The goal is clear: to build an end-to-end integrated battery supply chain—from nickel resource management, processing and refining, all the way to battery production domestically.IBC President Director Aditya Farhan Arif emphasized that this cooperation is a major milestone in realizing Indonesia’s position as a key player in the global integrated battery industry.“IBC was established to ensure Indonesia is not merely a supplier of raw materials, but also a competitive and sustainable hub for an integrated battery industry. This collaboration reflects the strong commitment of all stakeholders to build a high value-added national industrial ecosystem,” said Aditya.Upstream, ANTAM underscored its role as a provider of strategic raw materials managed responsibly and sustainably. ANTAM President Director Untung Budiharto stated that this cooperation aligns with ANTAM’s mandate to strengthen the national mineral downstreaming agenda.“For ANTAM, this collaboration is part of a strategic transformation to ensure Indonesia’s mineral resources deliver maximum added value at home. Through synergy with IBC and global partners such as Huayou, we are committed to supporting the development of a sustainable, competitive, and nationally strategic integrated battery ecosystem,” Untung asserted in a press release received by ruangenergi.com.Meanwhile, Zhejiang Huayou Cobalt Co., Ltd. President Director Chen Xuehua sees Indonesia as strategically positioned within the global battery supply chain, both in terms of resource availability and industrialization policy vision.“Huayou views Indonesia as a long-term strategic partner in developing the global battery industry. Through this collaboration, we are committed to bringing technology, industrial experience, and global sustainability practices to support the development of an integrated battery ecosystem in Indonesia,” said the Huayou Chairman.As the entity mandated by the government to develop the national battery industry, IBC serves as a bridge and orchestrator of synergy between domestic industry and global partners, including on technology and project management aspects. This collaboration also opens substantial opportunities for technology transfer and the upskilling of Indonesia’s human capital.The integrated battery ecosystem plan includes the construction of battery facilities that will be further detailed through a feasibility study. The project is targeted to have a capacity of up to 20 GWh, with an investment value of USD 5–6 billion.Going forward, the project is projected to create thousands of jobs, strengthen the national industrial structure, and contribute significantly to Indonesia’s economic growth and energy transition agenda.This Framework Agreement serves as the foundation for preparing a joint feasibility study and definitive agreements that will be implemented in stages. ANTAM, IBC, and Huayou reaffirm their commitment to ensure all stages of project development are carried out under principles of good governance, sustainability, and alignment with Indonesia’s strategic interests.

PT Vale Unveils Pomalaa Environmental Data, Affirming Its Long-Term Sustainability Commitment
PT Vale Unveils Pomalaa Environmental Data, Affirming Its Long-Term Sustainability Commitment
29 Jan 2026, 06:23 AM 767

PT Vale Indonesia has responded to findings raised by civil society groups regarding the Indonesia Growth Project (IGP) Pomalaa in Kolaka, Southeast Sulawesi.Through Director and Chief of Sustainability and Corporate Affairs Officer, Budiawansyah, the company emphasized that every stage of the project—including land clearing and mine water management—is carried out under good, sustainable mining practices, grounded in scientific studies and strict environmental oversight.Budiawansyah stressed that before mining activities begin in 2026, PT Vale had first prepared a comprehensive hydrological assessment to ensure that mine runoff meets environmental quality standards.The assessment covers watershed mapping, flow direction, and calculations of potential erosion and sedimentation, which are then translated into the design of sediment control facilities.“We conduct routine monitoring of water quality before any discharge to natural water bodies. This is not merely an administrative obligation, but a concrete part of our commitment to environmental management,” said Budiawansyah.Addressing issues around land clearing, Budiawansyah clarified the circulating figures. He said that to date, total land opened within the Pomalaa special mining license area amounts to only 4.3% of the permitted area, with openings in protected forest accounting for just 0.4%.“For the 2024–2025 period, newly cleared land totaled 487.9 hectares, not 854.29 hectares as stated in the letter of findings,” he asserted.Regarding concerns over the health conditions of residents in Hakatutobu Village, Budiawansyah underscored the need to view the regional context as a whole. Based on the company’s review, the village lies within a different river basin from the pathways of PT Vale’s mine runoff.“The safety of communities and the environment is our top priority. That’s why we address every issue with data and measured mapping,” he said.As a reference point, Budiawansyah pointed to PT Vale’s mining practices in Sorowako, South Sulawesi, which helped the company earn a 2024 PROPER Gold rating and a number of international ESG recognitions.“We believe transparency is key to building better mining operations. We are open to criticism and constructive input from the public and NGOs,” he concluded.

Indika Energy Establishes New Subsidiary, PT Bima Invi Sinergi Alami (BISA)
Indika Energy Establishes New Subsidiary, PT Bima Invi Sinergi Alami (BISA)
28 Jan 2026, 05:40 AM 1537

PT Indika Energy Tbk (INDY) officially announced a strategic move to expand its organizational structure at the beginning of 2026. Through an information disclosure submitted to the Indonesia Stock Exchange (IDX), it was revealed that Indika Energy has formed a new subsidiary named PT Bima Invi Sinergi Alami (BISA). This step is part of the company's commitment to business diversification and ensuring a focus on sustainable business activities in the future.Ownership Structure and Capital of PT Bima Invi Sinergi AlamiThe establishment of PT Bima Invi Sinergi Alami (BISA) was carried out by two direct subsidiaries of PT Indika Energy Tbk, namely PT Energi Makmur Buana (EMB) and PT Invi Mining Unggulan Nusantara (IMUN). It is worth noting that both EMB and IMUN are entities whose shares are more than 99% indirectly owned by the Company.Based on Deed of Establishment No. 22 dated January 26, 2026, prepared before Notary Ungke Mulawanti, S.H., M.Kn., the capital structure of BISA has been agreed upon as follows:PT Invi Mining Unggulan Nusantara (IMUN): Holds 750 shares, equivalent to a 75% ownership stake with a nominal value of IDR 750,000,000.PT Energi Makmur Buana (EMB): Holds 250 shares, equivalent to a 25% ownership stake with a nominal value of IDR 250,000,000.Consequently, the total issued and paid-up capital for the establishment of BISA reaches IDR 1,000,000,000. This new company is headquartered in South Jakarta, specifically at Graha Mitra, 10th Floor, Jl. Jend. Gatot Subroto Kav. 21. The establishment has also received official validation from the Ministry of Law of the Republic of Indonesia through Decree No. AHU-0006670.AH.01.01.YEAR 2026 dated January 26, 2026.Indika Energy’s Strategic Objectives for the New SubsidiaryThe operational focus of PT Bima Invi Sinergi Alami covers several fields of supporting services and heavy equipment rental. Specifically, BISA will conduct business activities in the field of Support Activities for Other Mining and Quarrying. Additionally, the company will operate in the sector of Rental and Operating Lease Activities (without option rights) for motor vehicles such as cars, buses, trucks, and the like, as well as the rental of construction equipment complete with operators.Management emphasized that the formation of this entity is in line with the business diversification strategy currently being implemented by the Company. This step is expected to strengthen Indika Energy's business ecosystem, particularly in supporting operational sustainability in non-coal sectors, which are the company's long-term targets.Despite the addition of a new entity, management stated that this event will not have a negative impact on the Company's operational activities, legal aspects, financial condition, or business continuity. However, administratively, BISA's financial statements will eventually be consolidated into the consolidated financial statements of PT Indika Energy Tbk.Key Points for InvestorsFor shareholders and potential investors, here are several main points to note regarding this corporate action:Event Date: Official establishment took place on January 26, 2026.Business Sector: Focuses on mining support, vehicle leasing, and construction equipment rental.Ownership: Fully owned indirectly by Indika Energy through IMUN (75%) and EMB (25%).Strategic Goal: Part of business diversification and commitment to sustainability.Financial Impact: No material adverse impact, though the new entity’s financial reports will be consolidated into the parent company’s financial statements.

Pani Gold Mine Nears Gold Production as Heap Leach Irrigation Begins
Pani Gold Mine Nears Gold Production as Heap Leach Irrigation Begins
27 Jan 2026, 07:22 AM 1843

PT Merdeka Gold Resources Tbk (EMAS), a subsidiary of PT Merdeka Copper Gold Tbk (MDKA), announced that the Pani Gold Mine (PGM) began irrigating its heap leach pad on 27 January 2026. This milestone is one of the final steps toward first gold production, which is targeted for the first quarter of 2026.In a heap leach process, crushed gold ore is stacked on a heap leach pad and irrigated with a chemical solution to dissolve the gold and silver contained in the ore. The precious-metal-rich solution (pregnant leach solution) is then routed to the ADR (Adsorption, Desorption, and Recovery) plant for extraction and refining, producing gold and silver in the form of dore bullion.PGM’s ADR facility has completed commissioning and is ready to process the pregnant leach solution. President Director of PT Merdeka Gold Resources Tbk, Boyke Poerbaya Abidin, said that the start of heap leach irrigation confirms that Pani’s first gold production remains on track for the first quarter of this year.“This project is not only a long-term value driver for investors, but is also expected to deliver tangible benefits to regional development—especially for the people of Pohuwato Regency—through increased local revenue (PAD), job creation, and the growth of local MSMEs,” he said, Tuesday (27/1/2026).Alongside the initial heap leach development, the Company is also accelerating construction of a Carbon-in-Leach (CIL) processing facility with an installed capacity of up to 12 million tonnes of ore per year—brought forward from 2027 to 2026—which will support increases in PGM’s medium- to long-term gold production capacity. In terms of resources, the Pani Gold Mine has an Ore Reserve of roughly 4.8 million ounces of gold from a Mineral Resource Estimate of more than 7 million ounces.Given this scale, Pani ranks among the largest primary gold deposits in Indonesia, further strengthening EMAS’s long-term growth fundamentals. With optimized heap leach operations and the development of the CIL facility, the Pani Gold Mine has the potential to produce more than 500,000 ounces of gold per year at peak output, positioning it as one of the largest gold mines in Indonesia and the Asia-Pacific

MIND ID’s IDR 60 Trillion Downstreaming Projects Expected to Create Thousands of Jobs
MIND ID’s IDR 60 Trillion Downstreaming Projects Expected to Create Thousands of Jobs
27 Jan 2026, 05:40 AM 964

The national mineral downstreaming policy is increasingly showing a tangible impact on job creation. The development of domestic bauxite processing and refining projects not only increases the added value of natural resources but also expands labor absorption, particularly for formal and skilled workers.This impact received appreciation from Member of Commission XII of the Indonesian House of Representatives (DPR RI), Eddy Soeparno, who views mineral downstreaming as a strategic instrument in driving the creation of quality jobs in Indonesia.Eddy stated that the downstreaming policy provides a direct effect on opening new job opportunities, especially in the mineral processing and refining industry sectors."We welcome the downstreaming policy positively because its impact is very concrete regarding job creation, especially for formal workers who are skilled and possess high added value," said Eddy.According to Eddy, one of the projects considered to make a significant contribution to labor absorption is the development of the integrated bauxite–alumina–aluminum processing and refining ecosystem managed by the MIND ID Group.Based on the Pre-Feasibility Study (PFS) document prepared by BPI Danantara together with the Downstreaming Task Force, this strategic project—with a total investment of approximately IDR 60 trillion—is projected to absorb up to 14,700 new workers during both the construction and operational phases.He assessed that such large-scale investment will create a broad multiplier effect on the national economy and employment. Not only does it absorb direct labor in the industrial sector, but this project also encourages the growth of jobs in supporting sectors.Eddy mentioned that the industrial ecosystem formed will stimulate various other sectors around the industrial zones."Investments like this will move the surrounding economic ecosystem, ranging from the logistics sector and supporting services to local MSMEs (Micro, Small, and Medium Enterprises)," he said.The urgency of downstreaming, Eddy continued, is becoming increasingly relevant given that national aluminum needs are still dependent on imports. Currently, domestic aluminum demand reaches around 1.2 million tons per year, with approximately 54 percent still being met from abroad.On the other hand, Indonesia possesses massive bauxite reserves, with total resources reaching approximately 7.78 billion tons and reserves of about 2.86 billion tons. This potential is considered a vital foundation for building a competitive national aluminum industry capable of sustainable labor absorption.Eddy emphasized that downstreaming must continue to be pushed toward the industrialization of derivative products and finished goods so that the economic benefits become more optimal."When processing and industrialization are carried out domestically, jobs are created, the added value remains in Indonesia, and the economic benefits can be directly felt by the workforce and the wider community," he concluded.

Merdeka Gold Resources (EMAS) Moves Closer to Gold Production at the Pani Gold Mine
Merdeka Gold Resources (EMAS) Moves Closer to Gold Production at the Pani Gold Mine
27 Jan 2026, 05:39 AM 1192

PT Merdeka Gold Resources Tbk (EMAS) announced that the Pani Gold Mine has begun irrigation on its heap leach pad on Tuesday (Jan 27). This milestone is one of the final steps toward first gold production, which is targeted for the first quarter of 2026.In the heap-leach process, crushed gold ore is stacked on a heap leach pad and irrigated with a chemical solution to dissolve the gold and silver contained in the ore. The metal-rich pregnant leach solution is then routed to the ADR (Adsorption, Desorption, and Recovery) plant for extraction and refining, producing gold and silver in the form of doré bullion.The ADR facility at the Pani Gold Mine has completed commissioning and is ready to process the pregnant leach solution.Boyke Poerbaya Abidin, President Director of Merdeka Gold Resources, stated that the start of heap-leach irrigation confirms that first gold production at the Pani Gold Mine can proceed as targeted in the first quarter of this year.“This project is not only a long-term value driver for investors, but is also expected to deliver tangible contributions to regional development—particularly for the people of Pohuwato Regency—through increased locally generated revenue (PAD), job creation, and the growth of local MSMEs,” he said in a press release received by Kontan on Tuesday (Jan 27).Alongside the initial development via heap leach, EMAS is also accelerating construction of a Carbon-in-Leach (CIL) processing facility with an installed capacity of up to 12 million tons of ore per year—moved up from 2027 to 2026. This facility will support increased gold production capacity at Pani over the medium to long term.In terms of resources, the Pani Gold Mine has an Ore Reserve of approximately 4.8 million troy ounces derived from a Mineral Resource Estimate of more than 7 million ounces of gold.With this scale, the Pani Gold Mine ranks among the largest primary gold deposits in Indonesia, further strengthening EMAS’s long-term growth fundamentals.As heap-leach operations are optimized and the CIL facility is developed, the Pani Gold Mine has the potential to produce more than 500,000 troy ounces per year at peak output, making it one of the largest gold mines in Indonesia and the Asia-Pacific region.

Freeport’s “Kucing Liar” Mine Gold Reserves Increase to 8 Million Ounces
Freeport’s “Kucing Liar” Mine Gold Reserves Increase to 8 Million Ounces
24 Jan 2026, 09:17 AM 2239

Freeport-McMoRan Inc. (FCX) reported that based on PT Freeport Indonesia’s (PTFI) latest exploration results, extractable copper reserves through 2041 are projected to increase to 8 billion pounds and gold to 8 million ounces.These figures are higher than previous reserve estimates, which were 7 billion pounds of copper and 6 million ounces of gold.In FCX’s performance report, it is explained that average production from Kucing Liar at full capacity will reach 750 million pounds of copper and 735,000 ounces of gold, or 35% higher than earlier projections.“During 2025, PTFI completed a study to evaluate the potential expansion of the mine area that was previously designed to operate at a long-term rate of 90,000 tons of ore per day,” FCX management wrote in its official document, quoted Saturday (January 24, 2026).“The study identified low-cost expansion opportunities to increase Kucing Liar’s design capacity to 130,000 tons of ore per day and to boost Kucing Liar’s reserves by around 20%,” FCX management said.FCX reported that, based on the economic study conducted, there will be an increase in capital of USD 0.5 billion, or about 10%, an impact on operating rates at the Grasberg Block Cave (GBC) underground mine, and a delay in capital spending related to processing higher-pyrite ore.FCX also reported that as of December 31, 2025, Freeport Indonesia had spent approximately USD 1.1 billion on Kucing Liar. Meanwhile, required capital investment is estimated to rise by an additional USD 4 billion through 2033.FCX is targeting initial production from the Kucing Liar mine to commence and ramp up gradually starting in 2030.“Initial production is expected to commence and be ramped up gradually around 2030,” FCX management representatives wrote.To date, Freeport Indonesia relies on three mines it owns, namely: Grasberg Block Cave, which produces around 140,000 tons of ore per day; DMLZ, around 70,000 tons of ore per day; and Big Gossan, 7,000 tons of ore per day with higher copper grades.Meanwhile, Freeport Indonesia’s copper production volume in 2025 reached 1.01 billion pounds. This figure is 44% lower than Freeport’s 2024 copper production of 1.8 billion pounds.Copper sales in 2025 were recorded at 1.2 billion pounds, down 26.2% compared with Freeport’s 2024 copper sales of 1.63 billion pounds.On the other hand, Freeport Indonesia’s gold production in 2025 was recorded at 937,000 ounces. This achievement is 49.7% lower than Freeport’s 2024 gold production of 1.86 million ounces.Meanwhile, gold sales in 2025 were reported at 1.05 million ounces. Last year’s gold sales were 42.2% lower compared with 2024 gold sales of 1.81 million ounces.

Indonesia’s Bauxite Downstreaming Gathers Momentum in West Kalimantan, Groundbreaking Planned for ...
Indonesia’s Bauxite Downstreaming Gathers Momentum in West Kalimantan, Groundbreaking Planned for ...
23 Jan 2026, 11:58 AM 2357

The government will commence initial inaugurations, or groundbreakings, for six strategic downstreaming projects at the end of January 2026. This move marks an acceleration of the national industrial transformation agenda while strengthening the foundation of a value-added, resource-based economy.Minister of State Secretary Prasetyo Hadi said the six projects are ready to enter the initial construction phase as part of efforts to stimulate the real sector and the fundamentals of the national economy.“At the end of this month, there will be roughly six downstreaming projects slated for groundbreaking,” Prasetyo said at the Presidential Palace Complex, Jakarta, Thursday (Jan 22).Prasetyo emphasized that West Kalimantan has been designated as one of the provinces hosting these downstreaming projects.In addition to the first six projects, the government is also preparing around 12 follow-on downstreaming projects targeted for inauguration starting in February 2026.“West Kalimantan is one of them. So there are six projects. Please pray that the remaining roughly 12 can proceed in February. By March at the latest, we aim to have all of them underway,” Prasetyo said.The groundbreaking plan aligns with the agenda of Indonesia’s Daya Anagata Nusantara Investment Management Agency (Danantara), which previously stated it was ready to commence several downstreaming projects in February 2026.Danantara Indonesia CEO Rosan Roeslani said the projects include bauxite and aluminum downstreaming, a bio-avtur facility, an oil refinery, and even poultry-farming projects at five locations.“These include bauxite and aluminum in Balikpapan, then bio-avtur, a refinery, and poultry farming in five places,” Rosan said after the “Semangat Awal Tahun 2026” event in Jakarta, Wednesday (Jan 14).Additionally, a coal-to-dimethyl ether (DME) gasification project may also break ground in February 2026, pending final readiness.This downstreaming push also has the attention of President Prabowo Subianto. On January 11, 2026, the President chaired a limited meeting at his residence in Hambalang, Bogor Regency, West Java, to discuss strengthening national industrial transformation, including bauxite downstreaming.Cabinet Secretary Teddy Indra Wijaya said the meeting reviewed the readiness of several strategic projects that will soon enter the groundbreaking phase.“The limited meeting discussed the readiness of several downstreaming projects that will soon begin groundbreaking,” Teddy said in an official statement.The government is targeting six new downstreaming projects with a total investment of about USD 6 billion to begin construction in early February 2026.One of the flagship projects is the development of an alumina smelter and a smelter-grade alumina (SGA) facility based on bauxite in Mempawah, West Kalimantan.West Kalimantan is seen as strategically positioned for this agenda. According to Indonesia Mining and Energy Watch (ISEW), Indonesia’s bauxite reserves are estimated at 7.78 billion tons. However, selling bauxite as raw ore has so far been deemed suboptimal for the economy.ISEW Executive Director Ferdy Hasiman explained that if all bauxite reserves were sold as raw ore at an assumed price of USD 40 per metric ton, the economic value would be only about USD 311.2 billion. That value rises significantly when bauxite is processed into alumina and aluminum.“Three tons of bauxite can produce one ton of alumina. Assuming a price of USD 400 per metric ton, the potential economic value rises to around USD 1.037 trillion,” Ferdy said.At the next stage, two tons of alumina can produce one ton of aluminum, with an economic value reaching USD 3.885 trillion, or about IDR 65,145 trillion.One flagship project currently being advanced by the government is the integrated bauxite mining and processing facility in Mempawah managed by PT Borneo Alumina Indonesia (BAI), an initiative of the MIND ID Group through PT Aneka Tambang Tbk and PT Indonesia Asahan Aluminium.Beyond the domestic focus, the downstreaming agenda is also attracting international attention. Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that Danantara has held talks with the United States regarding access to critical minerals, including bauxite.“There have been discussions between Danantara and the U.S. export agency, as well as several U.S. companies that have communicated with critical-mineral companies in Indonesia,” Airlangga said.According to him, the cooperation is business-to-business and reflects rising global interest in Indonesia’s critical minerals, which are needed by the automotive, aviation, and defense sectors.

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