Still About Vale's Divestment Price, Bahlil: Don't Feel His Items

JAKARTA - Investment Minister or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia warned PT Vale Indonesia (INCO) not to be arbitrary in providing investment prices of 14 percent of shares to MIND ID.

He emphasized that the concession land belongs to Indonesia and does not belong to the company so that the price given should benefit the country more.

"Don't think it belongs to him. It's a state-owned item, only giving concessions to him. And don't want the price to be him too. It must be a win-win," said Bahlil, quoted on Wednesday, December 13.

Bahlil also said that the government did not want the price given to be too high so that it did not benefit the state.

He added, in principle, the extension of the Work Contract (KK) into a Special Mining Business Permit (IUPK) was appropriate, but the price set had to be lower.

"Vale is good to protect the environment but we don't want Vale to give an expensive value in the divestment. It must be a win-winlah number. The profit of the country is much better," said Bahlil.

For your information, Vale Indonesia's shares are currently held by Vale Canada Limited at 43.79 percent. Meanwhile, Sumitomo Metal Mining owns 15.03 percent. Then about 20 percent is held by the public with a list on the Indonesia Stock Exchange (IDX). Meanwhile, MIND ID itself already owns 20 percent of Vale Indonesia's shares.

Minister of Energy and Mineral Resources Arifin Tasrif said with the addition of 14 percent of the shares from the divestment, MIND ID's total share ownership was 34 percent in Vale Indonesia. This portion also makes MIND ID the majority shareholder of Vale Indonesia.