Still Being Studied, MIND ID Aims For Inalum IPO In 2026

Director of Portfolio and Business Development MIND ID, Dilo Seno Widagdo. (Maria Trisnawati / VOI)

JAKARTA - Director of Portfolio and Business Development MIND ID, Dilo Seno Widagdo revealed the plan of an initial public offering (IPO) subsidiary of MIND ID, PT Indonesia Asahan Aluminum (Inalum) on the Indonesia Stock Exchange. Dilo said, until now his party is still conducting a study. As for the Inalum IPO Company's Long-Term Plan (RJPP), it will only occur in 2026 or 2027.

"Unlocking Inalum Value is one of the options that we are currently reviewing. After all, in terms of RJPP, we may be in 2026-2027," said Dilo to the media crew in Jakarta, Thursday, January 9.

Although it will be listed on the stock exchange next year, DIlo has to fix Inalum's equity story to make it attractive to investors. If you look at the Inalum stand alone smelter in Kuala Tanjung, North Sumatra only has a capacity of 250,000 tons per year so it is less attractive to investors if you have to do an IPO in the near future.

"Well, in 2025, we have to improve the equity story first," added Dilo.

He further added that recently Inalum has also collaborated with PT Aneka Tambang Tbk (ANTM) to establish a subsidiary of PT Borneo Alumina Indonesia (BAI) to operate a bauxite smelter located in Mempawah, West Kalimantan. He also emphasized that there must be clarity on the production capacity of all Inalum business lines, including smelters.

"For example, later he must have an upstream. Sizing for his midstream which is the same as BAI for the alumina must also be clear," continued Dilo.

Meanwhile, State-Owned Enterprises (BUMN) Minister Erick Thohir expressed his support for the plan to list the initial shares in this capital market.

Erick emphasized that so far the health level of MIND ID's subsidiaries is increasingly showing significant improvements.

"The revenue is getting better, the profit is getting better. The dividend itself is planned to enter yesterday in 2023 to 2024, which is IDR 7.4 trillion. Next year, if I'm not mistaken, it could be IDR 11 (trillion), this is consolidation," said Erick.