MIND ID Plans To Add Shares In Vale, Minister Of SOEs: It's Time To Share With The State

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed the latest news about the plan to increase MIND ID's shares in PT Vale Indonesia Tbk. He said that the 11 percent release of Vale's shares to be purchased by MIND ID was still in the negotiation stage.

Furthermore, Erick said the addition of government shares through state-owned companies in Vale Indonesia is the right of the state. He assessed that after Indonesia's additional commodities were managed by foreigners for decades, it was time to share with the state.

For your information, Vale Indonesia is a nickel mining company that has been OWNed by foreigners. The company has been operating in Sulawesi since 1967. In 1990, divestment was carried out as Vale Indonesia's shares through the Indonesia Stock Exchange (IDX). Then, in 2020, MIND ID was new.

"We are not anti-investigating foreigners. But, I also hope that if indeed those who already have how many tens of years but are not optimal, it is time to also share with the state," he said when met at the DPR Building, Parliament Complex, Senayan, Jakarta, Thursday, June 15.

As is known, Mind ID owns 20 percent of Vale Indonesia's shares. Currently, Vale Indonesia is in the process of divesting an advanced share of 11 percent. This is to meet the requirements for the extension of the work contract which will expire on December 28, 2025, which is at least 51 percent of the shares controlled by the Indonesian side.

Erick wants to target profits for the country through downstream natural resources (SDA). However, he said, this downstreaming must also be profitable.

"Don't let us also be a country that only exports raw materials," he said.

With the utilization of downstreaming, said Erick, it is hoped that it will create jobs for many parties. Moreover, said Erick, Indonesia's demographics are currently dominated by the younger generation.

For example, continued Erick, the downstream process has also been carried out by PT Aneka Tambang Tbk (ANTM) in collaboration with parties from other countries.

"If we look at Antam itself, there has been a lot of cooperation with several parties abroad, there was one yesterday pushed in China, Korea and it is not impossible for us to feel the need for additional development assets. After all, this belongs to the state," he said.

"Especially if we look at the policies of these mines, yesterday many Indonesian private parties also took care of some of them being turned into government options," he continued.

For your information, currently the composition of Vale Indonesia's shareholders consists of 43.79 percent owned by Vale Canada Limited. Then, 15.03 percent belongs to Sumitomo Metal Mining Co., Ltd (SMM).

Then, Vale Japan Ltd's 0.54 percent. Meanwhile, 21.18 percent became public shares listed on the IDX, and 20 percent owned by MIND ID.