The Only Non-Chinese Company That Has a Smelter, KESDM: Its Divestment Must be Assisted

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Minerals and Coal revealed that the negotiation process for the divestment of PT Vale Indonesia (INCO) shares to the state-owned mining holding, MIND ID, is still ongoing.

Acting Director General of Mineral and Coal, Bambang Suswantono, said that this divestment process must be seen from a diplomatic perspective because Vale is the only non-Chinese company that has a refining or smelter industry.

"This is the only non-Chinese one, which means we have to help, we ensure that the international impression of investment in Indonesia is healthy," said Bambang, quoted Wednesday, January 17.

He added, with Vale, it is hoped that the investment climate in Indonesia will not be seen as originating only from China.

"So that the international impression is not only China," continued Bambang.

Moreover, he said, Vale is also consistent in protecting the environment and processing ex-mining land.

Regarding the share divestment process, the Director of Mineral and Coal Program Development at the Ministry of Energy and Mineral Resources, Ing Tri Winarno, said that the share price negotiation process was ongoing.

He also confirmed that there is an opportunity for Indonesia to get special discounts from Vale.

"That space is still open, for example, if you look at INCO's share price for the last 3 months, it was Rp. 4,600, currently it is already Rp. 4,300. That is if it matches the share price, but there must be a certain discount," said Tri.