BUMN Interests Add Shares In Vale, Arya Sinulingga: Still Wait For Government Rest

Special Staff to the Minister of SOEs Arya Sinulingga. (Photo: Mery Handayani/VOI)

JAKARTA - Mining BUMN Holding or MIND ID plans to increase share ownership in PT Vale Indonesia Tbk (INCO), but is currently still waiting for direction from the government. MIND is rumored to be annexing 11 percent of Vale's shares through divestment.

Special Staff to the Minister of SOEs Arya Sinulingga explained that the corporate action was still being carried out.

Given that the government is also strengthening the downstreaming of the domestic mining sector.

One of them is through the establishment of an electric vehicle battery (EV Battery) factory.

"Just join the government, if the government wants to enter, we will enter. The government is downstream (mining). There is already an interest in increasing MIND ID's shares in Vale, because we focus on being downstreamed," said Arya, at the BUMN Ministry Office, Jakarta, Friday, February 3.

Previously, SOE Minister Erick Thohir also revealed that the government was negotiating with nickel mining producers whose shares were majority controlled by Vale SAS and Vale Canada Limited.

But unfortunately, Erick was reluctant to reveal what were the points of negotiations.

Even so, Erick emphasized that the government will attract these strategic multinational companies to strengthen the mining ecosystem or downstream to support the EV Battery industry in the country.

In early January, Erick Thohir also 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 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.