OAO Russian Aluminium (Rusal), the world's third largest aluminium smelter, has announced a plan to invest Rp26 trillion (US$2.89 billion) in the construction of an aluminium factory and coal fired power plants in West Java.

West Java governor Danny Setiawan explained that the Russian company is likely to go ahead with the project immediately, and said he expects the aluminium plant to not only reduce unemployment, but to cut the country's dependence on imports for aluminium products.

Rusal and the West Java administration are scheduled to carry out a feasibility study for the plant in the next six months.