Ministry Of Energy And Mineral Resources And Ministry Of Finance Cooperate On IUPK Vale Indonesia

Secretary General (Sekjen) of the Ministry of Energy and Mineral Resources Dadan Kusdiana. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) stated that it is still coordinating with the Ministry of Finance (Kemenkeu) regarding the process of extending the work contract (KK) of PT Vale Indonesia to a special mining business permit (IUPK). "As in the rules, there are stages and they are already running. So far, the processes for the extension of the IUPK are hopefully not long. In the sense that it has been prepared for quite a long time, now we are coordinating with the Ministry of Finance, right in the IUPK it is one that should exist and this is what is requested is an increase in state revenue," said Secretary General (Secretary General) of the Ministry of Energy and Mineral Resources Dadan Kusdiana in Jakarta, quoted from Antara, Friday, March 1. He revealed that the coordination with the Ministry of Finance regarding the IUPK Vale Indonesia, one of which is about the tax system. "That is now being coordinated, maybe later the Ministry of Finance will decide what the tax system will be, for example," said Dadan. Furthermore, he said that after the acquisition of 14 percent with Vale Indonesia, it is hoped that all parties will benefit from the government side, state revenues will increase, downstreaming will occur and Vale Indonesia's performance will also improve. "We want that all of them benefit, the government's state revenues go up, the downstreaming happens, and the Vale companies are also getting better," said Dadan. The Indonesian government through the mining BUMN holding MIND ID officially acquired 14 percent of PT Vale Indonesia's shares. This was marked by the signing of a series of definitive agreements in the context of divesting foreign shares of PT Vale Indonesia Tbk (INCO) in Jakarta, Monday (26/2). With the signing, MIND ID currently holds Vale Indonesia's shares at 34 percent. Meanwhile, Vale's share divestment price is IDR 3,050 per share.

The signing was witnessed by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan, Minister of SOEs Erick Thohir, Minister of Investment/Head of BKPM Bahlil Lahadalia, and Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana. With the completion of the divestment process, the requirements for Vale to be able to extend the KK to become an IUPK have been fulfilled. "I also ask all friends of the ministry to ensure that downstream development runs in a profitable manner and this must be in its IUPK obligation," said Luhut. "And I last asked the minister's friends, all permits that have not been released to be completed immediately. Especially the IUPK can be issued this week so that the acquisition transaction process can be completed immediately. I think this is important, for us, Indonesia must be famously transparent," he continued.