MIND ID Prepares IDR 7 Trillion for the Acquisition of Vale Indonesia Shares

Illustration (Photo: Doc. Antara)

JAKARTA - The state-owned mining holding company, MIND ID, is confirmed to hold a 14 percent stake in PT Vale Indonesia Tbk (INCO). To take over these shares, MIND ID has prepared a number of funds.

MIND ID Finance Director Akhmad Fazri said the funds used to buy Vale shares came from the company's internal finances.

According to him, dividends from PT Freeport Indonesia are sufficient.

"Maybe it's from our internal cash, because Freeport's dividend is quite large," Fazri told reporters after attending a hearing with Commission VII of Indonesian House of Representatives (DPR RI), Tuesday, August 29.

The amount of funds prepared by MIND ID is IDR 7 trillion. However, Fazri emphasized that the amount is uncertain because there is no fixed price and the percentage of shares that will be provided by Vale.

"Maybe around IDR 7 trillion," said Fazri briefly.

Regarding the use of the bond issuance scheme to obtain additional funds, Fazri said, this was not necessary considering that the company's internal funds were still sufficient.

In addition, dividends from companies under the auspices of MIND ID still pay dividends regularly, such as PT Bukit Asam Tbk, TP Timah and Freeport.

Previously, in the RDP with Commission VII DPR RI, MIND ID Main Director Hendi Prio Santoso emphasized that his party had prepared funds if PT Vale Indonesia released 14 percent of its shares.

"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 Special Mining Business License (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.