Qualitative data envelopment assessment of different alumina refinery plants: the case of bauxite mining in West Kalimantan Province

Abstract

West Kalimantan is a bauxite-rich province with the world’s sixth-largest bauxite reserve. However, Indonesia experienced a bauxite, alumina, and aluminum import vs. export deficit (2018-2020), with imports exceeding exports in value. Based on the calculation of qualitative data envelopment analysis, this case study provides a solution through benchmarking assessment to measure the relative performance of bauxite resource utilization for 12 alumina plants (DEA). This technique utilizes each provincial district’s alumina production plan data to characterize its production technology, which provides a better analysis of how the status of the refinery development plan provides efficiency of alumina refinery plant development according to bauxite allocation across several districts. To determine the benchmarking site, the qualitative DEA method compares the performance analysis of the Charnes, Cooper, and Rhodes (CCR) model for constant return to scale (CRS) and the Banker, Charnes, and Cooper (BCC) model for variable returns to scale (VRS). According to the findings of the scenario I, Kapuas, Kendawangan, and Tayan Hilir are efficient sites. Sungai Kunyit and Cempage Hulu are also benchmarking units in Scenario II. This study aided in the development of a sustainability assessment for the implementation of an alumina refinery development plan across districts in West Kalimantan province.