Indonesia's aluminum industry to be hit by 317% inflated power hunger

Source: AL Circle Feb 13, 2026 14:20

Indonesia's aluminum industry is growing fast, tackling all the stalled sites and upgrading technology at processing units. The RKAB structure has made sure that the ore and the subsequent production process are streamlined. But what about the electrons? Globally, electricity alone accounts for roughly 30-35 per cent of the cost of producing one tonne of primary aluminium. By 2028, Indonesia's primary aluminium smelting capacity is projected to rise from 0.75 million tonnes per annum in 2024 to 3.13 million tonnes in 2028, a 317 per cent increase in just four years. That expansion is the final leg of Jakarta's downstream pivot: converting bauxite reserves into integrated alumina and aluminium output. But the decisive constraint is neither geology nor capital. It is power.

Indonesia's multi-GW demand shock that other regions have already faced The projected increase by SMM to 3.13 million tonnes per annum by 2028 is the culmination of Indonesia's post-2023 bauxite export ban strategy, which redirected ore into domestic refining and smelting. Since the ban, Indonesia has accelerated alumina refinery construction

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