Erick Thohir: There are Two Options Offered in the Vale Share Price Divestment Negotiations

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

JAKARTA - Negotiations on the divestment of Vale's share price have found a bright spot. The government, through the BUMN Mining Holding, MIND ID, has agreed on the share price to be purchased from PT Vale Indonesia Tbk (INCO).

Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that there were two options offered in the Vale share price divestment negotiations, namely discount or relinquish (land reduction).

"Since the beginning of Vale's negotiations, there have been only two options, either relinquish or discom, and if this happens we will build an ecosystem together, encouraging growth," he said at JIExpo, Kemayoran, Jakarta, written Monday, February 19.

Furthermore, Erick explained that the choice to reduce land does not mean that he does not like Vale working on nickel in Indonesia.

"I want to emphasize here, you know, I don't make investment difficult, I don't have any arrogance towards foreigners. "But as a nation, we also have to be smart, don't negotiate using English which should be no, no, no because we are limited, embarrassed, proud, yes, yes, yes, in the end we sell our country," explained Erick.

Furthermore, Erick said that the share divestment negotiations, which seemed long and tough, were open because he didn't like foreigners. However, it is part of the principle of protecting the Indonesian state.

"So that's why I don't want to sell the country, I want to negotiate quickly with all parties who have invested in Indonesia, but we have to maintain their commitment," he said.

Share Price Agreement Will Be Reported to Jokowi

Erick said that the agreed share price resulting from negotiations would be reported to President Joko Widodo (Jokowi) first and if approved, the divestment signing would immediately take place.

"I will report on the Vale agreement, where the Ministry of BUMN, the Ministry of Investment, and the Ministry of Energy and Mineral Resources are jointly carrying out these negotiations on an ongoing basis," said Erick.

"So later, when we have actually reported the price to the President and the President has given it the OK, only then will the cooperation be signed, between BUMN and Vale," he said.

He said that the signing of the Vale share divestment price agreement could be carried out next week.

He admitted that he wanted this share divestment to be carried out as soon as possible.

"We hope that next week, as soon as possible," concluded Erick Thohir.