ASIATODAY.ID, JAKARTA – The Indonesian government has not yet decided regarding the plan to divest Vale Indonesia shares into the hands of the Mining Industry State-Owned Enterprise (BUMN) Holding, MIND ID.
According to the Minister of State-Owned Enterprises (BUMN) Erick Thohir, so far his party is still studying this matter further.
Erick emphasized that he did not want this divestment process to be limited to the size of the share portion, but control was still held by a foreign party.
Remember, Vale Indonesia has been working on Indonesian nickel for a long time.
“There are two Vale divestment plans that we are currently looking at. The divestment is like what the cake looks like. Don’t let the divestment only be at the edges, but the one in the middle will continue to be controlled, there will be no efficiency,” he said at Taman Mini Indonesia Indah. (TMII), Jakarta, Saturday (28/10/2023).
“I have to study first,” he continued.
He explained that the government is open to controlling Vale Indonesia’s shares, whether 34 percent or 51 percent after divestment. However, he is reluctant if this is just a transfer of shares without any controlling power.
“Don’t let this divestment be half-hearted,” he said.
Erick said that the use of nickel, cobalt and manganese brings its own advantages to a four-season country. Although, BYD is working on the use of lithium, phosphate and ion.
Erick emphasized that his party would still study further regarding the divestment agreement later. Apart from that, he also opens up other collaborative opportunities that bring benefits.
“So we are studying Vale matters, we are encouraging Vale’s collaboration with Ford and Volkswagen. But we should also not close our eyes to whether Vale’s divestment is good on land that is given back to the state, but if it is our ownership, okay, we are looking for things which is positive for the future,” he explained.
The Ad Interim Coordinating Minister for Maritime Affairs and Investment also said that his party did not want to be rushed even though it was known that Vale Indonesia’s contract would expire in 2025. He also cannot confirm whether the divestment process will take place this year.
“Yes, it’s okay. Why are we the country in such a hurry? They are the ones who need us,” concluded Erick Thohir.
Previously, it was known that the finalization of the divestment of Vale Indonesia shares was in the hands of Erick Thohir. This means it’s just a business to business process.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif previously said that discussions with his party had been completed. Thus, the rest of the finalization was in Erick’s hands.
Some time ago, Erick Thohir spoke about the process of divesting Vale Canada Limited shares in PT Vale Indonesia Tbk to the BUMN Mining Holding, MIND ID. He said he had agreed with the Ministry of Energy and Mineral Resources (ESDM) that the annexation of Vale Indonesia shares by MIND ID was good for all groups.
In this case, he gave the example of the acquisition of 51 percent of shares in PT Freeport Indonesia.
“We have an agreement today that we encourage the Ministry of Energy and Mineral Resources to make policies that are good for all. One of them, when I spoke with the Minister of Energy and Mineral Resources, was that Freeport, which has international cooperation and BUMN, must relinquish (disposal of shares),” said Erick Thohir. in Jakarta, Monday (14/8/2023).
“Then also from the private sector, many mine owners are also relinquishing. Sorry, I’m not anti-foreign investment. This is policy, we have to relinquish. We have to have policy transparency,” stressed Erick Thohir.
Previously, Minister of Energy and Mineral Resources Arifin Tasrif reported that PT Vale Indonesia Tbk had agreed to divest 14 percent of its shares to MIND ID.
Arifin stated that the divestment of Vale shares to MIND ID has entered the final stage. All that remains is the financial consolidation process on a business to business (B2B) basis.
Only then will we decide on an operational agreement, which will be explored to be able to switch to MIND ID. (AT Network)
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