Red mud storage is associated with an increased risk of dam failure and there is an urgent need to address the environmental problem caused by the very fine particle size (average 4.9 µm) of red mud with high alkalinity (pH = 10–12.5) in the alumina industry. The specific objective of this study was to investigate the use of red mud based on the “simulation” integrating the sustainability aspect through the PROMETHEE method. The data source is from a field survey with experts conducted at the research location from the province of West Kalimantan, Indonesia. The results of the study using the PROMETHEE ranking parameter showed that the best optimal industrial cluster sites were Ketapang, followed by Belitung Island, Mempawah, and Teluk Batang, with scores of 0.4167, 0.0476, 0.0, and −0.463, respectively. However, using economic input and environmental output, the efficient frontier showed that Ketapang, Teluk Batang, and Pulau Belitung are efficient sites. Considerably more work will need to be carried out to determine the strategic partner in the increasing significant added value in the red mud industrial cluster sites.