PT INALUM is the biggest alumunium smelter in Indonesia
The investment decision was prompted by the uncertainty created by the oil crisis of the early 1970s. “The government and those in Japan’s aluminum industry were concerned about the security of aluminum resources available to Japan,” he adds.
Reflecting the equity split between Japanese and Indonesian shareholders, about 60 percent of the output from Inalum is shipped to Japan.
The remaining 40 percent is reserved for domestic demand in Indonesia, where it is used in the manufacture of molded products, cables and aluminum sheets to international quality standards.
Surplus electricity is supplied to the local community, where Inalum also plays a role in training the population. Housing, health, education and recreational facilities are provided for company employees, of whom there are about 2,500.
Protecting the environment is important. Inalum has been awarded the ISO 9002 for its quality control management, and it applies the R3 concept (reduction, recovery and recycling) to its activities. Everything, from the raw materials to the final product, can be recycled into the production process.
“We don’t need financial assistance, but we need continuous technology modernization. Many basic industrial technologies can be introduced from other countries.
“Indonesia has a brilliant future in terms of natural and human resources,” says Mr. Yamamoto. “But companies that come here should develop beneficial relation-ships with the local people and not just exploit the resources.”