Vale Alot's Stock Divestment Negotiations, Erick Thohir Firmly Doesn't Want To Be Expensive

SOE Minister Erick Thohir. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the negotiations for the release or divestment of shares of PT Vale Indonesia Tbk (INCO) are still in progress. Erick said the price offered by Vale was still expensive.

Therefore, Erick said that his party continues to try to reduce the price. Erick said that the Indonesian side wants to get the best price.

As is known, Vale Indonesia's shareholders, Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd (SMM) agreed to release 14 percent of their shares to PT Mineral Industri Indonesia (Persero) or MIND ID.

"Still surviving BUMN, still negotiating," Erick said at a press conference at the Ministry of SOEs, Jakarta, written Wednesday, December 20.

Even so, Erick was reluctant to reveal the target of completing the stock divestment price negotiations. He only emphasized that he would continue to negotiate with Vale until he got value that would benefit Indonesia.

"Anyway, forever. Until we get what we want," he said.

Erick said the government had accepted Vale's decision to only release 14 percent of shares to MIND ID from the 31 percent desired by the Ministry of SOEs.

Therefore, continued Erick, the pricing must also be good for the Indonesian side.

However, Erick emphasized that the effort to negotiate to reduce prices does not mean that Indonesia is not friendly to foreign investors.

"We have to pay fair the price, because this is our item. But that doesn't mean we are not friendly with foreign investment," said Erick.

For your information, the release of Vale Indonesia's shares is a burden that must be fulfilled for the extension of the contract which will expire on December 28, 2025. Where, at least 51 percent of the shares are controlled by the Indonesian side.

The composition of Vale Indonesia's shares is 43.79 percent led by Vale Canada Limited who is also a controller. Then, 15.03 is held by Sumitomo Metal Mining. Then, 20 percent is held by the public by the Indonesia Stock Exchange (IDX).

Meanwhile MIND ID owns 20 percent of Vale Indonesia's shares that have been controlled since 2020. So with the divestment of the remaining 14 percent, the Indonesian side even owns 54 percent of Vale Indonesia's shares.

In detail, 34 percent of the shares owned by MIND ID and 20 percent of the shares on the IDX.