President Director Of MIND ID Hendi Prio Ensures Inalum Split Off Will Occur In The Fourth Quarter Of This Year

INALUM illustration (Photo: Antara)

JAKARTA - The plan to split off PT Indonesia Asahan Aluminum (Inalum) from the state-owned mining industry holding Mining Industry Indonesia (MIND ID) will occur in the fourth quarter of 2022.

This was conveyed by the Managing Director of Holding MIND ID Hendi Prio Santoso while attending a Hearing Meeting with Commission VII DPR RI, Thursday 2 June.

"Regarding the Inalum split-off plan, God willing, we will do it in the fourth quarter of this year," said Hendi.

Hendi said that his party has now received approval for the initiative permit and the government is preparing a Government Regulation regarding the separation of the two.

Later, after the split off, Inalum will operate independently as a smelter operating company in the aluminum sector.

Furthermore, Hendi said, MIND ID could become a mining BUMN holding that owns 100 percent of Inalum Operating's shares.

"We will do the restructuring of Inalum and the breakdown of MIND ID in the third or fourth quarter of this year," he said.

He explained that currently Inalum Operating is still an integral part of MIND ID.

After the separation, MIND ID will become a company that purely functions as an investment holding company, while Inalum Operating will focus on operating activities in aluminum smelters.

"From the point of view of the Director General of Taxes, the signal is very clear, for the restructuring of the MIND ID and Inalum companies, we will split off so that the operating company does not stick to its investment holding," he said.

After the separation, Mind ID as a holding will remain 100 percent owned by the government. Then the final structure under Mind ID will be 65 percent share ownership in PT Antam Tbk, PT Bukit Asam Tbk 65.9 percent, PT Inalum 100 percent, PT Timah Indonesia Tbk 65 percent, and PT Freeport Indonesia 51.2 percent.

For information, the BUMN mining holding itself has been formed since 2019. Inalum was appointed as the holding parent named MIND ID.