Russia to Build Aluminum Plant in Kalimantan, Says Energy Minister

September 11, 2026 | 06:42 pm

TEMPO.CO, Jakarta - Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia stated that Russian aluminum giant United Company Rusal plans to build a bauxite processing facility to produce aluminum in Kalimantan.

According to Bahlil, the downstreaming plan was discussed during President Prabowo Subianto's state visit to Russia. The project is currently in the initial licensing phase. "The licensing process is nearly in its final stage," Bahlil told journalists at his office in Jakarta on Friday, September 11, 2026.

Bahlil noted that the project will involve domestic partners. However, he declined to reveal Rusal's potential partner or the project's investment value as calculations remain ongoing. "I will complete the feasibility study first," he said.

Previously, President Prabowo Subianto noted Russia's interest in constructing aluminum processing facilities in partnership with local firms. "So, these projects are proceeding very well, advancing rapidly, and we are also making swift progress in the processing sector, such as mining, through our cooperation with a major aluminum entity, I believe the world's largest, Rusal," Prabowo said as the guest of honor at the 11th Eastern Economic Forum (EEF) in Vladivostok, Russia, on Thursday, September 3, 2026.

UC Rusal is a Russia-based producer operating an integrated supply chain spanning bauxite mining, alumina refining, and aluminum smelting. In 2025, Rusal produced 3.91 million metric tons of aluminum, accounting for roughly 5.3 percent of global output. That same year, the company's alumina output reached 6.85 million metric tons, representing approximately 4.7 percent of global production.

Read: Indonesia Prepares Second Phase of Russian Oil Import

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