Vale's Investment And Downstreaming Is Considered Quite Slow, Erick Thohir Is Ready For Gaspol

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

JAKARTA - SOE Minister Erick Thohir revealed the benefits of Vale Indonesia's share divestment move. He said that Vale's investment and downstream nickel previously looked slow, now it can be faster in the future after 34 percent of the shares were held by MIND ID.

For your information, MIND ID currently owns 20 percent of Vale Indonesia's shares which have been controlled since 2020. With an advanced divestment of 14 percent, MIND ID will become the majority shareholder in Vale Indonesia.

"But most importantly for us when Vale becomes our executent (BUMN) we will encourage the acceleration of inevsation and downstreaming in Vale, which has been quite slow and the momentum of downstreaming in Vale is a very good momentum," Erick said at the Danareksa Tower, Jakarta, Tuesday, February 20. Erick admitted that he saw opportunities in the electric vehicle industry. Erick saw this while attending the 2024 Indonesia International Motor Show (IIMS) some time ago. On the other hand, market demand for conventional cars also seemed to decline.

"I see the demand for electric cars is increasing. I don't know, I haven't reported it yet, I don't know what percentage, but it's really increasing. And I see that there are several car companies selling non-electric cars that seem to have corrected sales, I don't want to say what the company is, but it means that this trend is happening," he explained.

According to Erick, the increase in the use of electric vehicles could be an opportunity for Vale Indonesia. Erick also said that the strengthening of Vale Indonesia after the divestment of shares to MIND ID was something that was right to do.

"Well, it means that our momentum is DOWNstreaming, inveting Vale faster is a momentum, that's what I see more," he said.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the signing which agreed on the price of 14 percent of the divestment of shares of PT Vale Indonesia Tbk (INCO) would be carried out next week or Monday, February 26, 2024.

"The signing agreement Monday (February 26) at 4 pm will be witnessed by Mr. Arifin (Minister of Energy and Mineral Resources), Mr. Bahlil (Minister of Investment), and also Mr. Luhut Coordinating Minister for Maritime Affairs and I," he said.

But unfortunately, Erick was reluctant to reveal how much the investment price was at 14 percent of INCO's agreed shares. "I don't want to comment on the price because as long as it's not in black and white, I can't comment. Moreover, this is a company Tbk," he said.