TEMPO.CO, Jakarta - Listed companies PT Aneka Tambang (Persero) Tbk (ANTM) and PT Indonesia Asahan Aluminium (Persero) signed an agreement to form a joint venture to build a Smelter Grade Alumina Refinery (SGAR). Antam and Inalum, the two companies are known for short, will begin the smelter construction next year in Mempawah, West Kalimantan.

"The smelter will start operating in 2019" Antam president director Tedy Badrujaman said at the SOE Ministry office on Thursday, October 15.

The smelter will have a two-million ton capacity per year, and is expected to help Inalum reduce its alumina import.

Tedy said the smelter will be built in two stages, but refused to mention the investment Antam and Inalum spend on it.

Inalum president director Winardi Sunoto said the company imports 500,000 tons of alumina from Australia and India each year. The smelter is expected to lower that volume.

The two SOEs will also seek the involvement of foreign investors—to help turn bauxites into alumina, but Inalum will be the joint-venture's majority shareholder.

"We need the technology," Tedy said.

So far, there are investors from China, Russia and the Middle East that are likely to participate.

ADITYA BUDIMAN