INFOGRAPHIC: Indonesia expands influence in global aluminum market

Indonesia is positioning itself as a key contributor to the aluminum supply chain by expanding its refining and smelting capacity, following its 2023 ban on bauxite ore exports to promote domestic processing under its downstreaming strategy.

The country's expanding aluminum industry could help mitigate supply pressures caused by disruptions linked to the war in the Middle East. Indonesia's aluminum production is expected to increase to 4.0 million metric tons in 2030 from 619,000 mt in 2025, while its alumina output is projected to reach 9.1 million mt in 2030, up from 4.3 million mt in 2025, according to S&P Global Market Intelligence data.

Indonesia's aluminum industry hopes that policymakers have applied lessons learned from the country's swift emergence as the world's top nickel producer.

Indonesia became the leading nickel producer after prohibiting nickel ore exports in 2020. However, the large-scale development of predominantly Chinese-owned nickel processing facilities contributed to an oversupplied market and depressed prices.

Aluminum industry experts have urged the government to manage the buildout of its refining and smelting capacity to ensure the industry's sustainability.