An economic analysis from the Center of Reform on Economics (CORE) Indonesia highlights that expanding the national downstreaming program into the bauxite sector stands as a vital strategic move to establish a resilient new export engine. Amid advancing international trade frameworks like the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), economists stress that shifting away from raw resource extraction to domestic mineral refinement is essential for shielding the nation from volatile global commodity shocks. By replicating the economic blueprint that successfully scaled Indonesia's nickel sector, processed bauxite derivatives such as alumina and high-purity aluminum can yield far greater macroeconomic returns in foreign markets.

This downstream mandate positions Kalimantan Barat (West Kalimantan) to emerge as a dominant epicenter for high-value mineral processing. Holding one of the nation’s largest resource basins at an estimated 3.29 billion tons of bauxite, the province is already anchoring transformative industrial projects, including the newly operational Smelter Grade Alumina Refinery (SGAR) in Mempawah, which processes roughly 3 million tons of raw bauxite into 1.2 million tons of alumina annually. With long-term provincial blueprints targeting an aggregate output capacity of 8.5 million tons of refined alumina through a projected 6.77 billion USD investment pipeline, the region is actively drawing interest from international buyers, including industrial developers from France looking to secure sustainable inflows of critical minerals. 
Source:
https://pontianakpost.jawapos.com/ekonomi/2607050037/perjanjian-dagang-ri-uni-eropa-hilirisasi-bauksit-berpeluang-jadi-mesin-ekspor-baru-indonesia?page=all