Vale's Divestment Process Is In The Hands Of The Minister Of SOEs

Ministry of SOEs (Photo: dock. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif gave the latest news regarding the process of divesting shares of PT Vale Indonesia. Arifin said that the sustainability of divestment is still awaiting the approval of the Minister of State-Owned Enterprises (BUMN).

Meanwhile, from the Ministry of Energy and Mineral Resources, he said, there was no problem regarding the release of Vale's shares.

"It's just a finalization with SOEs. From the Ministry (ESDM), it doesn't matter," Arifin told the media crew quoted on Friday, October 27.

The number of shares that Vale will release ranges from 11 to 14 percent. This divestment is a must so that Vale can still carry out its operations in Indonesia.

Meanwhile, the President Director of the Mining SOE Holding, MIND ID Hendi Prio Santoso, revealed that the divestment of vale shares of 14 percent is not final and there is a possibility of more than that amount.

"Not necessarily (only 14 percent). Still being negotiated," Hendi told the media quoted on Tuesday, August 15.

In accordance with Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba), PT Vale Indonesia whose Work Contract concessions will expire on December 28, 2025, is required to fulfill share divestment of 51 percent in stages to the Central Government, Regional Government, BUMN, regional-owned enterprises, and/or national private business entities.

For your information, currently the composition of Vale Indonesia's shareholders consists of 43.79 percent owned by Vale Canada Limited. Then, 15.03 percent belongs to Sumitomo Metal Mining Co., Ltd (SMM).