Inalum
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PT Indonesia Asahan Aluminium, colloquially known as Inalum) is an Indonesian state-owned company specialized in
aluminium Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...
smelting. The company manages the huge potential of electricity generated from Asahan River. Inalum was first established in 1976 as joint venture company between Indonesian government and , before it was fully acquired by the government in 2013.


History

The failure of the
Dutch East Indies The Dutch East Indies, also known as the Netherlands East Indies (; ), was a Dutch Empire, Dutch colony with territory mostly comprising the modern state of Indonesia, which Proclamation of Indonesian Independence, declared independence on 17 Au ...
government to take advantage of the swift flow of water from
Lake Toba Lake Toba (, Toba Batak: ᯖᯀᯬ ᯖᯬᯅ; romanized: ''Tao Toba'') is a large natural lake in North Sumatra, Indonesia, occupying the caldera of the Toba supervolcano. The lake is located in the middle of the northern part of the island of ...
through Asahan River prompted Indonesian government to build a hydropower plant. In 1972, the hydropower development plan strengthened after the government received a report from Nippon Koei, a Japanese consulting company, that the feasibility study of building hydropower plant was possible to be built as well as an aluminum smelter as the main user of the electricity it produced. Following the study, after lengthy negotiations and with economic assistance from the Japanese government for the project - later known as the ''Asahan Project'', the Indonesian government and 12 Japanese companies signed the master agreement on July 7, 1975, in
Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...
. Furthermore, in order to exercise capital investment in then-established company, the twelve companies together with the Japanese government formed Nippon Asahan Aluminium Co., Ltd. (NAA) on 25 November 1975. Inalum was established in Jakarta on January 6, 1976, to build and operate the Asahan Project, in accordance with the master agreement. The shares comparison between the Indonesian government and Nippon Asahan Aluminium Co., Ltd. at the time was 10% and 90%, respectively. The shares later changed gradually: in October 1978 the shares became 25% and 75%, in June 1987 it became 41.13% with 58.87%, and since February 10, 1998 it became 41.12% with 58.88%. To implement the provisions in the master agreement, the Indonesian government issued Presidential Decree No.5/1976 which underlies the formation of the Asahan Project Development Authority as a government representation responsible for the Asahan Project development. Inalum is noted as a pioneer and the first company in Indonesia who engaged in the aluminum smelting industry with total investment of 411 billion Yen. The status change of Inalum into a state-owned company occurred ''de facto'' on 1 November 2013 in accordance with the master agreement. The Indonesian government and Nippon Asahan Aluminium Co., Ltd. terminate the contract on 9 December 2013, and ''de jure'' Inalum officially became a state-owned company on 19 December 2013 after the government took over shares owned by the consortium. PT Inalum (Persero) officially became the 141st state-owned company on 21 April 2014 in accordance with Government Regulation No. 26/2014. Inalum is expected to become a holding holding of all state-owned mining companies. This is done so that the companies have greater integration of operations with diverse mine production while supporting the downstream mine industrialization. Members of the holding company including Aneka Tambang, Bukit Asam, and Timah. In addition, the holding will start a strategic plan to integrate mining production activities and smelting of mining products, including a plan for acquired PT Freeport Indonesia. In August 2019, the holding company renamed as ''MIND ID'', acronym of ''Mining Industry Indonesia''. In August 2024, Chinese company Yunnan Tin and Indonesian companies PT Timah and its parent company MIND ID entered into a strategic partnership.


See also

*
State-owned enterprises of Indonesia In Indonesia, state-owned enterprises () play an important role in the national economy. Their roles includes contributor for national economy growth, providing goods or services which are not covered by private company, employment provider, pro ...
* Aneka Tambang *
Grasberg mine The Grasberg mine has one of the largest reserves of gold and copper in the world. It is located in Mimika Regency, Central Papua, Indonesia near Puncak Jaya. It is operated by PT Freeport Indonesia (PTFI, ''see below''), a joint venture amon ...


References


External links


Official website
{{authority control MIND ID Indonesian companies established in 1976 Aluminium companies of Indonesia Non-renewable resource companies established in 1976