(July 22, 2025)--The rating reflects its strong likelihood of support from the parent company, PT Mineral Industri Indonesia (Persero) (MIND ID), strong market position, and strong financial profile. However, the rating is constrained by its exposure to commodity price fluctuations and project execution risk.
The rating may be raised if Inalum significantly increases its smelter capacity and successfully executes its alumina refinery project, resulting in significant growth in revenue and EBITDA generation while also maintaining its strong financial profile. On the other hand, we may lower the rating if the Company incurs debt greater than projected to support its significant capital expenditure requirements without being compensated for by stronger business performance, resulting in lower EBITDA and cash flow generation. The rating could also be under pressure if there are signs of diminishing support from the parent company.
Inalum engages in aluminum smelting with an annual capacity of 275,000 tons and is the only player that serves primary aluminum ingot in Indonesia with the second-largest capacities in Southeast Asia. The plant is powered by a hydropower plant with an installed capacity of 603 MW. As of March 31, 2025, Inalum was fully controlled by MIND ID, holding almost 100.0% ownership through the Common Class B shares, while the Government of Indonesia held one Class A Dwiwarna share. (ends)
