Indonesia Aluminum Market by Product Type (Flat-Rolled, Castings, Extrusions, Forgings, Powder & Paste, and Other Types), By Type (Primary and Secondary), By End User Industry (Transport, Consumer Goods, Machinery & Equipment, Construction, Foil and Packaging, Electrical Engineering, Other End User Industries) – Opportunity Analysis and Industry Forecast, 2025–2030
Industry: Materials and Chemical | Publish Date: 11-Jun-2025 | No of Pages: 140 | No. of Tables: 182 | No. of Figures: 107 | Format: PDF | Report Code : MC1360
US Tariff Impact on Indonesia Aluminum Market
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Industry Overview
The Indonesia Aluminum Market size was valued at USD 2.66 billion in 2024 and is predicted to reach USD 4.35 billion by 2030, with a CAGR of 8.5% from 2025 to 2030.
The aluminum market in Indonesia refers to the supply and demand trend of aluminum that is one of the versatile and light weight metals used across different sectors such as automobile, aeronautics, building, packaging and electronics. Modern manufacturing and infrastructure development highly depend on aluminum that possesses the properties of corrosion resistance, conductivity, and recyclability.
The market involves the extraction of bauxite ore, refining into alumina, and smelting alumina to produce aluminum metal. Aluminum’s properties such as strength, corrosion resistance, and conductivity make it essential for modern manufacturing and infrastructure projects. Fluctuations in global trade policies, energy costs, and demand from emerging economies further shape the aluminum market, making it an important component of the industrial landscape.
The Rising Construction Industry Propels the Growth of the Market
The rising construction industry is a major driver of the Indonesia aluminum market growth. With substantial investments directed towards building roads, bridges, airports, and other essential infrastructure projects, there is a heightened demand for aluminum, valued for its versatility in construction. This surge in construction activities prompts local aluminum producers to boost their production capacities to meet the growing demand.
According to the data published by the Government of Indonesia, the construction industry accounted for 9.86% of the nation’s Gross Domestic Product in 2023, making it the fifth largest contributor of the national economy. This significant contribution underscores the vital role of the construction industry in driving the growth of the bauxite mining market in Indonesia.
Growing Automotive Industry in Indonesia Boost the Market Growth
The increasing automotive industry is significantly driving the Indonesia aluminum market growth. As automotive manufacturers seek to produce lighter, more fuel-efficient vehicles, the demand for aluminum, known for its lightweight and high-strength properties continues to rise. This surge in demand is prompting local aluminum producers to expand their production capacities to meet the needs of the automotive sector. According to the International Organization of Motor Vehicle Manufacturers, the motor vehicle production in Indonesia increased from 890,000 units in 2021 to 1.18 million units in 2023. This increased production capacity positions Indonesia as a competitive player in the global market.
Environmental Concerns Restrain the Growth of the Aluminum Market
Environmental concerns significantly restrain the Indonesia aluminum market expansion by imposing regulatory constraints and increasing production costs. Aluminum production is energy-intensive and leads to substantial greenhouse gas emissions and environmental degradation.
To mitigate these impacts, the industry faces stringent environmental regulations, which require investments in cleaner technologies and compliance measures, thereby raising operational costs. Additionally, heightened environmental awareness among consumers and stakeholders’ pressures companies to adopt sustainable practices, potentially slowing expansion and production activities. These factors collectively hinder the industry's growth and competitiveness in the market.
Integration of Artificial Intelligence to Sort Mixed Aluminum Alloy Scrap Creates Market Opportunities
The integration of artificial intelligence (AI) with sort mixed aluminum alloy scrap presents a significant opportunity for the aluminum market in Indonesia. Traditionally, sorting aluminum alloy scrap has been a labor-intensive and time-consuming process, requiring significant human resources.
By employing AI algorithms and machine learning techniques, scrap merchants and smelters in Indonesia will be able to streamline the sorting process of mixed aluminum alloy scrap. These AI systems will quickly and accurately identify different types of aluminum alloys and separate them based on their composition and purity requirements.
This automation will not only reduce the time and labor costs associated with manual sorting but will also improve the overall efficiency of aluminum recycling operations. By ensuring that only high-quality aluminum scrap is used for recycling, AI-enabled sorting systems will contribute to the production of pure aluminum products, meeting the stringent quality standards demanded by various industries.
Moreover, the adoption of AI in sorting aluminum scrap will enhance the sustainability of the aluminum industry in Indonesia by promoting resource efficiency and reducing waste. By maximizing the utilization of recycled aluminum and minimizing impurities in the manufacturing process, AI-driven sorting technologies will contribute to the circular economy and environmental conservation efforts.
By Product Type, Extrusions Dominates the Indonesia Aluminum Market Share
Extrusions holds the dominating segment in the Indonesia aluminum industry due to their versatility, efficiency and cost-effectiveness. This type of product is widely used across industries such as construction, automotive and packaging driven by its ability to be molded into complex shapes while maintaining structural integrity.
Industries benefit from their adaptability as extrusions can be molded to specific designs without compromising on production speed or quality. Additionally, advancements in extrusion technology have enhanced precision that enables manufacturers to meet diverse consumer demands effectively.
By Type, Secondary is Expected to Achieve Highest CAGR Growth Through 2030
Secondary aluminum, produced by recycling aluminum scrap, is gaining significant traction due to its cost effectiveness and environmental benefits. This type requires less energy compared to primary aluminum production, aligning with the increasing focus on sustainability and reducing carbon emissions.
The rising adoption of secondary aluminum in industries such as automotive, construction, and packaging is driven by its comparable quality and lower production costs. With growing recycling initiatives and the demand for eco-friendly materials, secondary aluminum is expected to witness the highest CAGR in the market, showcasing its potential to drive future growth in the aluminum industry.
Competitive Landscape
The Indonesia aluminum industry comprises various key market players, such as PT Indonesia Asahan Aluminium (Inalum), PT Hua Chin Aluminum Indonesia, PT Indal Aluminum Industry Tbk, PT Alumindo Light Metal Industry Tbk, PT Mega Persada Group (MPG), PT. Inkasa Jaya Aluminum, PT Alko Aluminium, PT Aneka Tambang Tbk (Antam), PT Well Harvest Winning Alumina Refinery, PT Makmur Jaya Saputra Perkasa, PT HP Metals Indonesia, PT Calindo Damai Sejahtera Abadi, PT. ALEXINDO (Aluminium Extrusion Indonesia), PT Alakasa Industrindo, Tbk., PT Indoaluminium Intikarsa Industri, Alutech Aluminium Extrusion Indonesia, PT Sri Indah Aluminium Extrusion, PT Alcomex Indo, YKK AP Indonesia, PT Super Bond Indonesia and others.
Note: To access the most up-to-date market share information, consider purchasing our detailed report.
These market players are adopting various strategies including product launches across various regions to maintain their dominance in Indonesia aluminum market. By continuously innovating and launching new offerings, they aim to meet the evolving demands of customers and also enables them to capture new opportunities and expand their market share.
|
DATE |
COMPANY |
RECENT DEVELOPMENTS |
|
January 2024 |
Inalum |
Inalum launched two significant aluminum-related projects. One project involves building an aluminum smelter in West Kalimantan with a production capacity of 1 million metric tons per year, while the other focuses on developing a bauxite mining and refining complex in North Kalimantan. |
|
January 2024 |
Inalum |
Inalum announced to expand its aluminum smelter located in Kuala Tanjung. The expansion project aims to increase the smelter's production capacity and strengthen the company’s position in the global market. |
|
March 2022 |
East Hope Group |
East Hope Group initiated Phase 1 of its new energy material project in Ningxia, China. This launch reflects East Hope Group's commitment to advancing energy materials, including aluminum-related technologies. The introduction of Phase 1 highlights the company's proactive approach in driving innovation and contributing to the development of new energy materials, showcasing their pivotal role in shaping the future of energy-related industries. |
Indonesia Aluminum Market Key Segments
By Type
-
Primary
-
Secondary
By Product Type
-
Flat-Rolled
-
Castings
-
Extrusions
-
Forgings
-
Powder & Paste
-
Billets
-
Wire Rods
-
Other Types
​​​​​​​BY ALLOY SERIES
-
1xxx Series
-
2xxx Series
-
3xxx Series
-
4xxx Series
-
5xxx Series
-
6xxx Series
-
7xxx Series
By End User Industry
-
Transport
-
-
Aerospace
-
Automotive
-
Marine
-
-
Machinery and Equipment
-
Construction
-
Packaging
-
Food and Beverage
-
Cosmetics
-
Others
-
-
Electrical Engineering
-
Other End Users
Key Players
-
PT Indonesia Asahan Aluminium (Inalum)
-
PT Hua Chin Aluminum Indonesia
-
PT Indal Aluminum Industry Tbk
-
PT Alumindo Light Metal Industry Tbk
-
PT Mega Persada Group (MPG)
-
PT. Inkasa Jaya Aluminum
-
PT Alko Aluminium
-
PT Aneka Tambang Tbk (Antam)
-
PT Well Harvest Winning Alumina Refinery
-
PT Makmur Jaya Saputra Perkasa
-
PT HP Metals Indonesia
-
PT Calindo Damai Sejahtera Abadi
-
PT. ALEXINDO (Aluminium Extrusion Indonesia)
-
PT Alakasa Industrindo, Tbk.
-
PT Indoaluminium Intikarsa Industri
-
Alutech Aluminium Extrusion Indonesia
-
PT Sri Indah Aluminium Extrusion
-
PT Alcomex Indo
-
YKK AP Indonesia
-
PT Super Bond Indonesia
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 2.66 Billion |
|
Revenue Forecast in 2030 |
USD 4.35 Billion |
|
Growth Rate |
CAGR of 8.5% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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