Vale Hopes For IUPK To Provide Company Investment Plan Certainty

Illustration. (Photo: Doc. Antara)

PT Vale Indonesia Tbk hopes that the government's special mining business permit (IUPK) document can provide certainty regarding the company's future investment plan.

"So, hopefully with the IUPK later when we get it, of course everything will be clearer so that we are also more comfortable carrying out the investment plan," said Senior Manager of Communication Vale Indonesia Bayu Aji during a media meeting in Jakarta, quoted from Antara, Tuesday, April 2.

Bayu Aji reported that until now Vale Indonesia had not received the IUPK document.

"If so far from PT Vale's side, we have not received the documents," said Bayu.

Moreover, he continued, Vale Indonesia is also developing three new nickel smelters with a total investment of nearly 9 billion US dollars spread across Sorowako (South Sulawesi), Polamaa (Central Sulawesi), and Bahodopi (Central Sulawesi).

Therefore, Vale Indonesia also hopes that the IUPK document can be issued as soon as possible.

"We really hope that it can be done soon because with the IUPK, of course, this will guarantee our certainty again in the future. Just imagine if you want to invest 9 billion US dollars and then the IUPK is not clear, right if you do business, it must be clear in the future," he said.

Bayu added, "So, we are working on the $9 billion project, the commitment is still ongoing."

He revealed that the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan during the signing ceremony for the divestment of Vale Indonesia's shares at the end of February 2024 also hoped that IUPK documents could be issued immediately.

"When we signed the divestment, Mr. Luhut had conveyed that he wanted this to be resolved immediately and actually the spirit of PT Vale," he said.

"We are also trying to get all kinds of information needed, we fulfill all kinds of requirements, but of course this IUPK is in the hands of the Government. So, from the Government that will be issued later," added Bayu.

However, he also emphasized that actually the Government and Vale have something in common, namely downstreaming must be faster.

"So, as we convey that the time for signing the divestment is actually between the Government and PT Vale, there is a common perception, namely that downstreaming must be faster, this is agreed," he said.

It is known that 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 February 2024.

With the signing, MIND ID currently holds Vale Indonesia's shares at 34 percent. The price for Vale's share divestment is IDR 3,050.00 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 requirement for Vale to be able to extend his work contract (KK) to become an IUPK has been fulfilled.