The country’s aluminum industry especially aluminum sheet and aluminum foil industry has not expanded as expected. There has been no capacity expansion although increase in production. The production has increased from year to year. The production of aluminum sheet rose to 61,900 tons in 2008 from 54,400 tons in 2004. Similarly the production of aluminum foil rose from 13,200 tons in 2004 to 13,600 tons in 2008.
The country’s production capacity for aluminum sheet and aluminum foil remained unchanged in 2004 - 2008. The production capacity for aluminum sheet was 116,000 tons per year and the production capacity for aluminum foil at 20,000 tons per year.
PT. Alumindo Light Metal Industry Tbk, the country’s largest producer of aluminum sheets and aluminum foils, plans to expand its production capacity for aluminum sheet and aluminum foil respectively by 144,000 tons and 20,000 tons per year from 70,000 tons and 15,600 tons per year.
A number of Indonesian aluminum products have been exported including aluminum ingot, aluminum extrusion and aluminum billet, aluminum wire, aluminum pipes, aluminum sheets and foils and downstream products or aluminum household equipment. In 2008, the country’s exports of aluminum were valued at US$ 700 million or an increase of 16.1% per year.
Since 1980, Indonesia has been able to meet other Asian countries in competition in the production of aluminum. The Indonesian products are competitive in price and hygienic and environmentally friendly. Indonesian products have been used by world class aircraft industry.
Based on data at International Aluminum Institute, the world’s production aluminum reached 3.03 million tons in January 2009, down 6.4% from the same period last year. China is the world’s largest producer of aluminum with production averaging 922,000 tons per year although its production fell 13% in January 2009 from the same month a year earlier. The second largest producer is North America with production at 455,000 tons in January 2009.
Aluminum consumption per capital in advanced nations like the United States, Canada, Japan and Italy reached 17kg a year – far exceeding world’s average of 1 kg per capital. China, India, Brazil and Russia are also major producers and consumers of aluminum.
In Indonesian consumers of aluminum are constructions, automotive component and household equipment industries. Consumption of aluminum products is predicted to continue to grow as aluminum is widely used by various industries.
Description of product
Aluminum is blend of bauxite making up 66% and clay 33% through electrolyte process under a temperature of 950-970 degrees C. The result of the mixture is Aluminum and Oxygen such as Aluminum Oxide produced in the island of Bintan.
Aluminum is a light metal that could be cast, crushed, folded, pressed and welded. Aluminum will be damaged by limestone, gypsum, cement mixture and concrete. The characteristics of aluminum that make it widely used are:
• Light - only 2.7 gr/cm³, as against iron’s 8.1 gr/ cm³)
• Resistant to corrosion
• Good conductor of electric current and heat
• Easily fabricated/shaped
• Not very tough but could be toughed through alloying
Aluminum foil is also used widely as packaging material as it is cheaper n price than tin foil. Foil is a product of thin metal with thickness of less than 0.15 mm and 1.52 meters - 4.06 meters wide. Generally foil is not purely metal.
Metallized Aluminum Foil Plastic is used as building materials in housing, warehouses, factories, etc. Aluminum foil does spread fire and it reflects 97% of ultraviolet ray that it is safe for health and keep room air cool and protect buildings.
Characteristics of aluminum foil:
• Heat resistant
• Air tight, not magnetic helping separate aluminum from tin in the process of recycling.
Its characteristics of being air tight and resistant to corrosion, keeping out oxygen, make aluminum foil a good packaging material for export goods. In addition it is easily shaped.
Aluminum foil is often used as in inside layer for containers to protect goods from damage such as in juice boxes. It is resistant to fat but less resistant to acid and base that additional layer with candle or chemical is needed.
It’s being resistant to sun heat makes aluminum foil widely used as containers for health materials. Aluminum foil could resist heat up to 550 degrees C, that medical instruments could be sterilized in aluminum container. Food in aluminum container could be kept for a long tome after being boiled and sterilized.
Production capacity and producers
Production capacity stagnant
Based on official data at the Industry Ministry, Indonesia has 76 companies producing aluminum including producers of producers of aluminum alloy ingot, aluminum extrusion, aluminum sheet and aluminum foil.
The country’s production capacity for aluminum is around 136,000 tons per year including aluminum sheets and aluminum foils. Currently the industry has a capacity utilization of around 88%.
Aluminum Sheet Industry
Aluminum sheet is produced from aluminum ingot as the feedstock. Aluminum sheet is used as a basis material for kitchen wares and household equipment, electrical equipment, building materials and aluminum foil.
Currently the country has 5 producers of aluminum sheet with a total production capacity of 116,000 tons per year. Based on data at the Industry Ministry, the production capacity of the aluminum sheet industry has remained unchanged in the past five years.
The Maspion Group through two subsidiaries PT. Alumindo Light Metal Industry Tbk (ALMI) and PT. Indal Aluminum Industry is the largest producer of aluminum sheets in Indonesia. ALMI operates integrated aluminum factories as it also has an aluminum foil factory. Its production of aluminum sheet is fed into its aluminum foil factory.
In 2009, the country’s production capacity for aluminum sheet is forecast to increase to 190,000 tons per year after plan by ALMI to double its production capacity to 144,000 tons from 70,000 tons per year.
Aluminum Foil Industry
The first aluminum foil producer in Indonesia started operation in the 1980’s. Based on official data from the Industry Ministry, the country’s production capacity for aluminum foil remained unchanged from 20,000 tons in the five year period of 2004 – 2008. Currently the country has five producers of aluminum.
PT. ALMI, the country’s largest producer of aluminum foil plans to expand its production capacity from 15,600 tons to 20,000 tons per year. Altogether the country will then have a total capacity of 24,400 tons per year.