Regarding Vale's Stock Divestment, SOEs Are Optimistic To Be Majority Shareholders

Deputy Minister of BUMN Kartika Wirjoatmodjo (Photo: Doc. Antara)

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) is currently still waiting for directions from the Ministry of Energy and Mineral Resources regarding the divestment of PT Vale Indonesia Tbk (INCO). The Ministry of SOEs wants state-owned companies to be able to control the majority of Vale's shares.

Deputy Minister of SOEs Kartika Wirjoatmodjo said his party was waiting for the decision of the Ministry of Energy and Mineral Resources. After a decision was made, he said, the Ministry of SOEs could only discuss the proportion of SOE shares in Vale Indonesia.

"If Vale is one thing, we are still waiting for directions from the Ministry of Energy and Mineral Resources regarding matters that are the fulfillment of their requirements for the transfer of KK (Kontrak Karya) to IUPK (Special Mining Business Permit), that's the territory of the Ministry of Energy and Mineral Resources," he said in Jakarta, Wednesday, July 26.

Tiko, Kartika's nickname, said that SOEs certainly want to become majority shareholders. However, of course, this must wait for the operation permit of the Ministry of Energy and Mineral Resources.

"But we will see, later after the agreement between the Minister of Energy and Mineral Resources and Vale, we will see the possibility of us increasing share ownership from Antam. We want Antam to move up to majority if possible," he said.

Furthermore, Tiko said that in negotiations the government tried to take a 34 percent portion of Vale Indonesia's shares.

"We are negotiating, the range is 4 percent and continues to 10 percent, and we are talking about being able to go up to 34 percent. But it will depend on Vale," he explained.

On the other hand, Tiko said that his party also wants Vale to increase production. Especially contributing to domestic downstreaming.

"But what is also important is that we also want Vale to really increase production and development in the future for the battery ecosystem as well," he said.