On 24 September 2024, President Joko Widodo officially inaugurated the First Bauxite Injection of Smelter Grade Alumina Refinery (SGAR) PT Borneo Alumina Indonesia in Mempawah, West Kalimantan. During his speech, President Jokowi emphasized the importance of natural resources downstreaming to end raw material exports, a practice dating back to the VOC era. He highlighted that advanced countries have significantly benefited from Indonesia's raw material exports while Indonesia has not developed optimally. Leveraging the global geopolitical situation, COVID-19 pandemic, and economic recession, Jokowi underscored that Indonesia now has a unique opportunity to build its domestic industry free from external disruptions.
President Jokowi also pointed to the success of nickel value-added policies. Prior to 2020, raw nickel exports generated only USD 1.4 to 2 billion. However, after halting raw material exports, the value soared to USD 34.8 billion in 2023. He further mentioned that 56% of Indonesia's domestic aluminum demand, totaling 1.2 million tons, is still imported. With the completion of this smelter, it is expected to save the country USD 3.5 billion annually by reducing aluminum imports. Jokowi also celebrated the completion of the integrated aluminum industry ecosystem from upstream to downstream. With an investment of IDR 16 trillion, the smelter will process bauxite into alumina, which will then be shipped to Kuala Tanjung for further refining at PT Inalum. This marks the beginning of a new industrial era in Indonesia, supported by additional smelter projects in Sumbawa and PT Freeport, driving Indonesia towards its goal of becoming an industrial nation.
