Following a recent report from this publication regarding Harita Group’s plans to build a new alumina or aluminum plant in Indonesia, it has been revealed that Harita’s partner, Innovation Global Industries Holdings Limited, has announced plans for an Initial Public Offering (IPO) on the Hong Kong Stock Exchange (HKEX) this January. The project will be executed under PT Kayong Aluminium Nusantara, which was established on July 25, 2024, with a registered capital of IDR 4.8 trillion. The company entered into an agreement to construct an aluminum smelting project in Indonesia in November 2024.
“We plan to invest in and start the construction of an integrated electrolytic aluminum industry chain project in Saudi Arabia, with a designed annual production capacity of 500,000 of electrolytic aluminum, and an aluminum smelting project in Indonesia with a designed annual production capacity of 1 million of electrolytic aluminum. The projects in Saudi Arabia and Indonesia are subject to international trade relationships, affecting the stability of the global supply chain. Currently, we are in the early stages of preparation for the design of an aluminum smelter and related production facilities,” said Cui Lixin, Chairman of the Board, Non-Executive Director, Founder, and one of the Controlling Shareholders, in the document.
Based on three major factors in Indonesia—abundant bauxite resources, rich energy resources, and a proactive labor force—the company envisions becoming a world-class green aluminum industry group. The project is expected to commence construction before the end of 2026, with an estimated construction period of 18 to 24 months. Currently, the company is in the early stages of preparing the design for an aluminum smelter and related production facilities.
“Resonating with these opportunities and the broader context of globalization, we proactively respond to the BRI (Belt and Road Initiative) and plan to invest in an integrated electrolytic aluminum industry chain project in Saudi Arabia and an aluminum smelting project in Indonesia,” the company added.
The aluminum plant has been confirmed to be located in the Pulau Penebang Industrial Zone (KIPP) in North Kayong Regency, West Kalimantan Province. However, there is no explicit report indicating that Innovation Global and Harita Group will collaborate on developing an alumina plant in Indonesia.
PT Kayong Aluminium Nusantara will be majority-controlled by Innovation Global through its indirect subsidiary Harrington Management (HK), which holds a 55% share. The remaining 45% is owned by PT Cipta Langgeng Kemakmuran, which is, in turn, controlled by PT Harita Jayaraya, an Independent Third Party holding 99.99%.
According to CRU, the demand for electrolytic aluminum in Southeast Asia, a major export market for Indonesia’s electrolytic aluminum, is projected to grow at a compound annual growth rate (CAGR) of approximately 3.5% from 2023 to 2028. Indonesia’s domestic demand for electrolytic aluminum is expected to rise from approximately 465 kt in 2023 to approximately 487 kt in 2028. Meanwhile, demand for aluminum in Southeast Asia, a major bauxite-exporting region, is anticipated to grow from approximately 1.9 mt in 2023 to 2.2 mt in 2028.
Currently, Innovation Global operates an electrolytic aluminum production base in Huolinguole, Inner Mongolia, with an annual designed production capacity of 788.1 kt. Its alumina production base in Binzhou, Shandong Province, has an annual designed production capacity of 1,200.0 kt. The company achieved an annual actual production volume of electrolytic aluminum of 744.1 kt, 757.9 kt, and 755.4 kt in 2022, 2023, and 2024, respectively. For alumina refining, the company recorded 706.2 kt, 1,546.1 kt, and 1,539.9 kt in 2022, 2023, and 2024, respectively.