Vale Is Obliged To Divest 11 Percent Of Shares, The Minister Of SOEs Ensures That Perusda Will Participate

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif (ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that PT Vale Indonesia Tbk (INCO) has an obligation to divest its shares by 11 percent. This is an obligation to extend the Special Mining Business License (IUPK).

"So Vale has an obligation (divest) of 11 percent," said Arifin at the Ministry of Energy and Mineral Resources Building, quoted on Saturday, February 25.

Arifin said that later the government would consider the distribution of shares resulting from the divestment between state-owned mining holding companies and regional companies. "The distribution will be able to go to the regions and state-owned enterprises. That needs to be considered," added Arifin.

According to him, the distribution of shares to the regions must be done in order to bring benefits to the area where Vale stands. He imitated PT Freeprt Indonesia, which also released its share rights of 10 percent to BUMD Papua.

"It must be divided fairly. There is already a best practice," concluded Arifin. It is known that the mining contract for Vale Indonesia will expire in December 2025.

Previously, SOE Minister Erick Thohir also revealed that the government was negotiating with nickel mining producers whose shares were majority controlled by Vale SAS and Vale Canada Limited.

Meanwhile, MIND ID mining BUMN Holding stated that it also plans to increase the share portion of PT Vale. MIND ID President Director Hendi Prio Santoso said, based on the results of a limited meeting with the President, the Minister of Energy and Mineral Resources and the Minister of SOEs, his party accepted the decision that PT Vale should be increased in portion controlled by the state through MIND ID.

"The decision is that Vale must be increased in portion controlled by the state through Mind id so that we can become the party that consolidates PT Vale as will happen this year with Freeport Indonesia," Hendi explained in a Hearing Meeting with Commission VII on Monday, February 6.