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Home » China-funded smelter fires up Indonesian defence concerns
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China-funded smelter fires up Indonesian defence concerns

adminBy adminJuly 1, 2025No Comments1 Min Read
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A China-funded bauxite smelter on an island in western Indonesia could scale down a key naval training area, prompting concerns that national defence priorities are being sidelined in favour of foreign investment, according to a Jakarta-based military analyst.

The proposed US$4.9 billion facility, to be developed by Tianshan Alumina Indonesia – a unit of Chinese metals giant Tianshan Aluminium – is set to occupy about 400 hectares (988.4 acres) of land currently used by the Indonesian Navy on Singkep island, part of the Riau Islands province.

The site has long hosted military drills and joint exercises with foreign partners, including the US-led Super Garuda Shield in 2022 and amphibious training exercises with Australian forces.

“It is true that there is a plan to build a bauxite smelter by Tianshan Alumina Indonesia, which is located in the south of Singkep island,” navy spokesman First Admiral Tunggul told Indonesia Defence Magazine on June 21.

The development was disclosed at a June 18 meeting between the presidential staff office, the ministry of defence and the navy, and comes under a broader policy push to encourage resource processing within Indonesia. The project was granted National Strategic Project status in 2023, accelerating its implementation.



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