PT Indonesia Asahan Aluminium, colloquially known as Inalum) is an Indonesian state-owned company specialized in aluminium smelting. The company manages the huge potential of electricity generated from Asahan River. Inalum was first established in 1976 as joint venture company between Indonesian government and Nippon Asahan Aluminium Company, Ltd., before it was fully acquired by the government in 2013. The failure of the Dutch East Indies government to take advantage of the swift flow of water from Lake Toba through Asahan River prompted Indonesian government to build a hydropower plant. In 1972, the hydropower development plan strengthened after the government received a report from Nippon Koei, a Japanese consulting company, that the feasibility study of building hydropower plant was possible to be built as well as an aluminum smelter as the main user of the electricity it produced. Following the study, after lengthy negotiations and with economic assistance from the Japanese government for the project - later known as the Asahan Project, the Indonesian government and 12 Japanese companies signed the master agreement on July 7, 1975, in Tokyo. Furthermore, in order to exercise capital investment in then-established company, the twelve companies together with the Japanese government formed Nippon Asahan Aluminium Co., Ltd. (NAA) on 25 November 1975. More information...
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