Regarding Vale's Divestment, The Minister Of SOEs Encourages The Ministry Of Energy And Mineral Resources To Create A Regulation That Benefits All Parties

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that regarding the divestment of shares of PT Vale (INCO) he had asked the Minister of Energy and Mineral Resources (ESDM) to issue regulations that benefit all parties.

"We have an agreement today that we encourage the Ministry of Energy and Mineral Resources to make good policies for all. Thank God he is very supportive and policy in him. We'll just have to wait," Erick told the media in Jakarta, Monday, August 14.

He also asked for a transparent policy in Vale's stock divestment process, which is currently in the process of negotiating between MIND ID and Vale. He gave an example of the transfer of shares of PT Freeport several years ago which was officially annexed by the state-owned mining holding company MIND ID. For this reason, Erick also hopes for the same transparency in Vale's divestment.

"Of course Freeport, which is an international cooperation and BUMN must be relinquish (leaving shares) and also from the private sector, many mine owners as well as railquish, of course. There must be policy transparency," continued Erick.

Erick emphasized that the divestment carried out was not because he was anti-foreign but was already a rule.

"I'm sorry, I'm not anti-foreign investment, this is a policy. It has to be realigned. We have to have policy transparency," continued Erick.

He also hopes that the stock divestment process will be completed in the near future.

"That's the B2B process, so we hope it can be completed as soon as possible. How many numbers can we join," explained Erick.

On a separate occasion, the President Director of the Mining BUMN Holding, MIND ID Hendi Prio Santoso, revealed that Vale's share divestment would be different from the divestment of PT Freeport Indonesia. Hendi emphasized that his party was determined to be a controlling company.

"It's different (with Freeport) because we have to be the controller, the government has mandated it," he told the media, Monday, August 14.

Hendi admitted that he was confident in being the controller because he had the support of the government. In addition, the reason he wanted to be the controller was because Vale's mining was considered lacking.

"Because we want to ensure development occurs. Development in terms of potential because so far, since 2014 the development has been lacking if we quote the minister," added Hendi.

Hendi added that until now his party together with Vale are still negotiating and discussing the divestment of this mine. He also said that until now it was not certain that Vale would release 14 percent of its shares to Indonesia.