The Smelter Grade Alumina Refinery (SGAR) Phase I project in Mempawah is driving economic growth in West Kalimantan and supporting President Prabowo Subianto's Asta Cita vision of regional economic development. Managed by MIND ID, a state-owned mining company, SGAR plays a key role in the national aluminum supply chain while delivering significant benefits to the local economy. MIND ID's Corporate Secretary, Heri Yusuf, highlighted that SGAR is designed to create tangible impacts on local communities, which are crucial stakeholders in ensuring the sustainability of bauxite downstreaming. He emphasized the company’s commitment to adding value to the regional economy in line with the spirit of President Prabowo’s leadership.
SGAR has contributed to a consistent rise in regional economic growth. According to BPS data, economic growth in Kalimantan increased from 3.18% in 2021 to 4.94% in 2022, reaching 5.43% in 2023, and further rising to 5.52% in the third quarter of 2024. During the construction phase, SGAR employed over 2,000 workers, 70% of whom were locals, and in the operational phase, 881 employees are mainly from surrounding communities. PT Borneo Alumina Indonesia (PT BAI), the project operator, has also implemented community empowerment programs, including training for local SMEs and skills development. Additionally, SGAR has made contributions to education and the environment, such as building school facilities, offering technical certifications, and planting 22,000 mangrove saplings. The project reduces dependency on alumina imports and strengthens Indonesia’s aluminum self-sufficiency, positioning SGAR as a model for regional development that can boost national economic growth.
