Deputy Minister Of SOEs Targets Vale Deal's Share Divestment This Week

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

JAKARTA - Discussions on the divestment price of PT Vale Indonesia (Tbk) are still ongoing. However, the Ministry of State-Owned Enterprises (BUMN) is targeting a price agreement this week.

For your information, the negotiation process regarding Vale's share divestment price has been going on since January last year.

Deputy Minister of SOEs Kartika Wirjoatmodjo said that his party was still negotiating the amount of Vale's share divestment price together with ESDM Minister Arifin Tasrif and Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan.

"Today's venue we are negotiating with the ministers of ESDM and Menkomarves," he said when met at the Office of the Coordinating Ministry for Maritime Affairs, Jakarta, Wednesday, February 7.

With this discussion being held, Tiko, Kartika Wirjoatmodjo's nickname, projects that the price agreement will be completed this week.

"In this week we should just agree on the price," said Tiko.

Previously, it was reported that the Ministry of State-Owned Enterprises (BUMN) would set the share divestment offering price of PT Vale Indonesia Tbk (INCO) at the end of January. BUMN targets the share divestment price to be lower below market price.

Deputy Minister of SOEs Kartika Wirjoatmodjo said the government, in this case the Ministry of SOEs, would ask for a discount from PT Vale Indonesia Tbk.

"But what is certain is that we have to ask for a discount. Yes, what is certain is that the offer is lower than the market. The price is not yet available, I just want to include the price offer at the end of January 2024," he said after attending the 2nd Anniversary of ID FOOD, at Waskita Rajawali Tower, Jakarta, Monday, January 8.

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.

Vale Indonesia's share composition is 43.79 percent held by Vale Canada Limited who is also the controller. Then, 15.03 percent is held by Sumitomo Metal Mining. Then, 20 percent is held by the public with a list on the Indonesia Stock Exchange (IDX).