Member Of Commission VII Dissatisfied With MIND ID Shares In INCO Only 34 Percent, Minister Of Energy And Mineral Resources: Can Withdraw Vale!

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - Member of Commission VII DPR RI expressed his dissatisfaction with the amount of shares divested by PT Vale Indonesia Tbk (INCO) to MIND ID of 14 percent.

Deputy Chairman of Commission VII DPR RI Bambang Hariyadi said that MIND ID could actually take over 51 percent of Vale's shares with 34 percent distribution of shares by MIND ID and 20.63 percent held by public shares.

According to Bambang, the amount of 34 percent stake does not necessarily make MIND ID the majority shareholder.

"We only get 34 percent. Even small children know that 34 percent is not the majority, sir. The majority is still 51 percent," said Bambang in a Working Meeting with Commission VII DPR RI quoted on Thursday, April 4.

Bambang also assessed that the Minister of Energy and Mineral Resources did not carry out his duties in trying and fighting for the takeover of Vale's shares for MIND ID.

"Not even a bit of your verita, you are fighting for your mandate in our work meeting," he continued.

Present on the same occasion, Chairman of Commission VII DPR Nasdem Faction Sugeng Suparwoto likened the majority share ownership of Indonesia in Freeport. For Freeport, Indonesia has a total stake of 51 percent, in contrast to MIND ID in Vale which is only 34 percent and added to public share ownership by 20 percent.

"The 51 percent context is biased in the community because as a comparison, if Freeport is 51 percent bullet. Meanwhile, it has already gone public first, so 54 percent of the previous MIND ID used to be 20 percent plus divestas 14 plus 20 percent has gone public, so understanding 54p but not fully controlled by the state because it is already gopub. that's different from freeport," explained Sugeng.

Met after a Working Meeting, Arifin Tasrif said, previously in 1990 INCO had fulfilled its divestment obligations by releasing 20 percent of its shares for Indonesia.

"There are already rules. In 90 it has been divested," said Arifin briefly.

According to him, if the government again encourages INCO to release its validity, it is feared that Vale Canada Limited (VCL) will resign and not invest in Indonesia.

"If you push it again, the additional 17 percent, for example, can pull it out," added Arifin.

Arifin continued, currently Vale has an investment commitment of IDR 178.58 trillion or 11.2 billion US dollars at a dollar exchange rate of IDR 15,944.

"Yes, now there is a strategic investment plan with a value of almost 11 billion. That's the value that will be implemented until 2029. So if for example, this is going to happen again, I want to look for it again," explained Arifin.

Just so you know, the investment commitment is a requirement for Vale Indonesia to extend its mining permit, and change it from a work contract (KK) to a special mining business permit (IUPK).

In his presentation, Arifin unraveled three giant projects belonging to PT Vale Indonesia on Sulawesi Island, namely nickel and HPAL (High Pressure Acid Leaching) Sorowako, nickel and HPAL Pomalaa mines, as well as nickel and RKEF Bahodopi mines.

HPAL is a nickel limousine processing and refining.

The nickel and HPAL Sorowako mines will start operating in 2027 with an investment of US$2 billion. Furthermore, the nickel and HPAL Pomalaa mining projects will start operating by the end of 2026 with an investment value of US$4.6 billion.

"And investment in nickel and RKEF Bahodopi mines will operate in 2026 with an investment value of US$2.6 billion," said Arifin.

Apart from the three projects, Arifin said there is one more project that is still being explored with a value of around 2 billion US dollars. Therefore, overall, the project value reaches 11.2 billion US dollars.