China's Shandong Nanshan Aluminium Co Ltd plans a $5 billion integrated aluminium plant on the Indonesian island of Bintan, company Chairman Song Jianbo said on Wednesday.

"(It) will be completed within 3 years. We will use local bauxite to make up alumina and then we will use the alumina to make up aluminium ingot," he told reporters after meeting Industry Minister M.S. Hidayat.

The capacity of the alumina smelter will be 2.1 million tonnes per annum, while the capacity for aluminium ingots will be 530,000 tonnes per annum.

The output will be for the local Indonesian market as well as for export to such countries as Japan and the United States, he said.