The Indonesian aluminium market has demonstrated strong operational stability through the 2026 Chinese New Year period, with smelting and refining activities continuing uninterrupted and indicating a mature downstream processing sector. Industry stakeholders are also strengthening cooperation with government officials to boost aluminium exports, particularly of value-added products like alumina and semi-finished aluminium, which supports long-term international competitiveness and export growth.

Despite stable bauxite prices at around USD 28–32 FOB and alumina prices near USD 308 FOB, producers are taking a cautious approach to long-term contracts due to uncertainty over the 2026 bauxite RKAB (Work Plan and Budget Approval). This strategic pause has created short-term market equilibrium, with producers and buyers waiting for clearer regulatory guidance before advancing new agreements. With policy clarity expected to unlock broader negotiation activity, the Indonesian aluminium sector is poised for sustainable expansion while navigating domestic supply, export demand, and seasonal market dynamics.
Source: https://www.alcircle.com/press-release/indonesia-aluminium-market-deep-dive-dynamics-and-policy-driven-stability-117389