Kabantara Group Builds an 800-Hectare Smelter, Mineral Downstreaming Strengthens Bauxite Mining Control in Indonesia

Admin Ugems
Lectura de un minuto - Thu Jan 08 01:00:00 GMT 2026

Kaisar Bauksit Nusantara Group (Kabantara Group) is partnering with a company that has secured 800 hectares of coastal land in a regency on the island of Sumatra. The site will be used to build a smelter on the 800-hectare parcel.Kabantara Group owner HRM. Khalilur R. Abdullah Sahlawiy says he has received a clear explanation from the Ministry of Energy and Mineral Resources (ESDM) that the Indonesian government prioritizes the issuance of mining Business Permits (IUP) for companies that invest in smelter construction.“ESDM refers to this prioritization of mining Business Permits, or IUP, as the Downstreaming Program,” said the man popularly known as Gus Lilur, Wednesday (December 31, 2025).The young national entrepreneur from Situbondo explained that building a bauxite smelter requires a minimum investment of IDR 50 trillion. The government must provide ease of access for smelters to secure certainty of continuous supply.“Based on our cooperation with a smelter company and the ESDM’s Downstreaming Program, Kabantara Group is confident it can become the Kaiser of Indonesian Bauxite,” Gus Lilur asserted.According to him, it is no secret that nickel smelters are proliferating in Indonesia—and coal entrepreneurs are plentiful as well.In contrast, bauxite smelters and bauxite entrepreneurs in Indonesia can be counted on one hand—in other words, they remain scarce.“Amid the limited competition in domestic bauxite mining, Kabantara Group is confident it can become the Kaiser of Indonesian Bauxite,” he said.As founder and owner of Kabantara Group, he is targeting August 17, 2026 as the peak milestone when Kabantara Group will have secured a dominant position in Indonesia’s bauxite sector.He hopes Indonesian entrepreneurs can truly become masters in their own country. In his view, the fifth principle of Pancasila—Social Justice for All the People of Indonesia—must be realized on the ground.“Concrete proof would be that Indonesia’s natural resources bring prosperity to all Indonesians,” concluded Gus Lilur.



Source https://djakarta-miningclub.com

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