RRI.CO.ID, Jakarta – Investment in Indonesia’s bauxite downstream sector recorded a sharp surge in the second quarter of 2026, reshaping the mineral processing landscape that had long been dominated by nickel.

Minister of Investment and Downstream Processing and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, revealed that realized investment in bauxite downstream processing reached IDR 40.1 trillion (approximately USD 2.23 billion) in Q2 2026 -- a 193 percent increase compared to the previous quarter’s IDR 13.7 trillion.

This achievement was the highest among all mineral downstream commodities.

“Because there have been several bauxite facility developments, both by domestic and foreign parties, bauxite has taken first place for the first time, surpassing nickel,” Minister Rosan said in Jakarta on Tuesday, July 21, 2026, as quoted by Antara.

Bauxite investment outpaced nickel at IDR 29.4 trillion, followed by copper at IDR 16.7 trillion, iron and steel at IDR 13.2 trillion, silica sand at IDR 4 trillion, and other mineral commodities at IDR 4.7 trillion.

Overall, downstream investment in Q2 2026 reached IDR 152.7 trillion, up 5.7 percent year-on-year, and accounted for 29.8 percent of total national investment of IDR 511.8 trillion.

According to Minister Rosan, the surge was driven by the construction of several bauxite processing and refining facilities by both domestic and foreign investors. He noted that the development indicates the downstream program is becoming more evenly distributed and no longer solely dependent on nickel.

“In the second quarter alone, employment reached 742,263 people, an increase of 5.1 percent,” Minister Rosan added.

BKPM also reported that investment realization from January to June created 1,448,862 jobs -- up about 15 percent compared to the same period last year. One supporting project is Phase I of the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan, with a capacity of 1 million metric tons of alumina per year.

Lawmakers welcomed the development. Commission XII member Eddy Soeparno praised the sharp rise in bauxite investment, noting that smelter projects had previously lagged behind nickel. He urged continued expansion into downstream industries to maximize national value added.

Similarly, Commission XII member Syarif Fasha emphasized the importance of sustaining the trend and ensuring fair distribution of benefits to resource-producing regions. He called for consistent policies so that local communities receive their rightful share under existing laws. ***