This is MIND ID's Source of Funds for the Acquisition of Vale Indonesia Shares

Illustration (Photo: Doc. Antara)

JAKARTA - Main Director of MIND ID Hendi Prio Santoso emphasized that his party has prepared funds if PT Vale Indonesia releases 14 percent of its shares.

This answered the question of member of Commission VII of Indonesian House of Representatives (DPR RI) Mulyanto who asked about the readiness of this state-owned mining holding fund.

"There are concerns that when these shares are to be divested, they could reach 14 percent or even 20 percent, for example, is MIND ID ready to buy and have the money?" asked Mulyanto at the Commission VII of DPR RI Hearing with MIND ID, Acting Director General of Mineral and Coal and PT Vale Indonesia Tbk (INCO), Tuesday, August 29.

This question was then answered emphatically by Hendi who stated that his party was ready.

"God willing, ready, sir," said Hendi.

For this reason, his party asked for support from stakeholders including related Ministries and Institutions regarding the importance of consolidating assets and financial reports and the role of MIND ID as a controlling shareholder, considering that in B2B the divestment obligation is only 11 percent.

"It needs support from the government, especially the Ministry of Energy and Mineral Resources, to ensure that the arrangements for investment obligations and the consequences of releasing areas as stipulated in the 2014 Contract of Work (KK) are also clearly implemented in the IUPK that will be given the plan," continued Hendi.

He also asked for support to complete the divestment process before extending the KK to IUPK.

"And also to guarantee the government's rights in the IUPK contract are guaranteed. That's all," concluded Hendi.

MIND ID Director of Finance, Akhmad Fazri said, MIND ID will use the company's internal cash to buy shares divested by Vale Indonesia to the government through MIND ID.

This is because the dividends of a subsidiary such as PT Freeport Indonesia are quite large.

"We still have internal cash, we'll see about the rest. Because we got dividends from several, yesterday from PTBA, Timah, Freeport, we also regularly have internal cash every three months," he said.

"Maybe from our internal cash, because the freeport dividend is quite large. Maybe around IDR 7 trillion," said Fazri.