Erick Thohir Targets Negotiations On Vale Share Prices To Be Completed In Two Months

JAKARTA - Minister of State-Owned Enterprises (BUMN), Erick Thohir targets the price negotiation process for divestment of 14 percent of PT Vale Indonesia Tbk (INCO) shares released to MIND ID to be completed within the next 1-2 months.

This was conveyed by Erick in a working meeting (raker) with Commission VI of the DPR RI, at the DPR Building, Parliament Complex, Senayan, Jakarta, Monday, December 4.

"But of course we are still trying to negotiate rather than pricing or valuation with Vale, hopefully in the next 1-2 months it can be resolved," said Erick.

Furthermore, Erick said that after divesting 14 percent of INCO's shares, the government through MIND ID became the majority shareholder with 34 percent ownership.

Landing the Head of Agreement in the United States, with Vale that MIND ID has increased its shares to 34 percent. This means that the largest shareholder in Vale," said Erick.

Regarding the share price, Erick himself did not specify the price proposed by the government. But previously, Erick said the price offered by Vale was still too high and would negotiate to get the cheapest possible.

"Yes, the price negotiations are as cheap as possible," Erick told the media quoted on Wednesday, November 22.

Erick said the price given must be special or below market prices and if Vale does not meet it, the government will take steps to shrink land or relinquish. This is done because Vale is considered not to have carried out his investment commitment in accordance with the Work Contract (KK).

"Yes, you can't (premium price). If that's the case, some of theirs are not in accordance with their commitments," he said.