REPUBLIKA.CO.ID, JAKARTA -- Indonesia needs more hydropower plants that produce affordable energy to keep up with growing demand of aluminum. The demand, mostly coming from automotive industry, which reaches almost 800,000 tonnes, is covered by import as Indonesia can only produces 250,000 tonnes.

Indonesian Foundry Industries Association (APLINDO) stated that in 2015, the demand would rise faster. It can even touch 2,2 million tonnes per year in 2025. 

"We can produce more aluminum if we are supported by hydropower plant," Chairman of APLINDO Achmad Safiun said on Wednesday, November 26.

The plant must be able to produce affordable energy. He said that about 48 percent of aluminum price is from energy.

"We cannot beat the price if we still use coal-fired power plant," he said.

Producing a tonne of aluminum needs at least 14 MW of energy per hour. Indonesia already has resources to produce such energy, especially in East Indonesia, but it is hampered by infrastructure. 

"We need to build infrastructure to attract investment," he said.

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