Red Pelat Company Will Be Involved By Vale, Minister Of SOEs: Like Freeport

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir confirmed that state-owned companies would be involved in the divestment of shares of PT Vale Indonesia Tbk (INCO), as was done at PT Freeport Indonesia.

As is known, PT Vale Indonesia must divest its shares by 51 percent as a condition for extending contracts in Indonesia. From all work contracts (KK) to special mining business permits (IUPK).

Erick said there had been a limited meeting (ratas) with the Minister of Energy and Mineral Resources, Coordinating Minister for Maritime Affairs and Investment, Minister of Finance, Coordinating Minister for Economic Affairs led directly by President Joko Widodo (Jokowi), to discuss this.

"That the divestment of Vale BUMN will play a role. This is back for us to win-win, just like Freeport yesterday. After divesting, improving our financial performance and Freeport wants to become our ecosystem by building a smelter," he said at the Initial Press Conference in 2023, Monday, January 2.

He said SOEs do not have to move on their own in building an ecosystem. The reason is, SOEs can partner with foreign companies.

Vale is also something interesting. In building a BUMN ecosystem, it doesn't have to be a BUMN itself, it can also partner abroad in building MSMEs and private sectors. Now, it's just a business process that is transparent and open," he said.

Erick said, Vale is an important part because it produces nickel. Because of that, SOEs will be involved in the divestment of Vale shares.

Vale is an important part for us, because Indonesia is one of the countries that predicts nickel. Then the IBC is the same ecosystem," he explained.