ANTM - To designate SGAR project as national strategic project

ANTM - To designate SGAR project as national strategic project Indonesia Asahan Aluminum (Inalum) reapplies Smelter Grade Alumina Refinery (SGAR) project in Mempawah - West Kalimantan to be designated as a national strategic project (PSN). It strives to fasten project completion amidst 16 months halt due to EPC concortium holders' dispute (Chalieco & PTPP). The project's further delay induces potential revenue loss of USD28 mn/month or USD419.16 bn. SGAR project phase-1 is expected to comemercially run by 2H24. Meanwhile, Inalum is targetting 300k ton in 2024 spurred by an additional capacity of 50k existing smelter in Kuala Tanjung - North Sumatera, which is estimated to finish in August'24. Aluminium's domestic market absorbs 1.2 mn ton p.a. (Source : Bisnis Indonesia) Comment : As ANTM holds 40% ownership on SGAR project, reapplying for PSN will accelerate its project completion considering large current cumulated potential loss. Moreover, bauxite export ban has been imposed in June 2023, limiting market share while its smelter construction is awaited to be onboard after further delay. Yet, domestic aluminum demand looks potential, triggering ANTM's bauxite demand as well as potential business on SGAR project as current domestic aluminium supply relies on import.