Deputy Minister Of SOEs Calls It Difficult To Get 51 Percent Of Vale Indonesia's Shares

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) continues to encourage the potential for the transfer of majority shares in PT Vale Indonesia Tbk (INCO).

Even so, it is recognized that the majority of stock management above 51 percent is quite difficult.

Deputy Minister of State-Owned Enterprises (BUMN) I Pahala Nugraha Mansyuri said negotiations were still ongoing.

One of them is about the amount of shares that Vale Indonesia must invest.

"That's what we'll talk to them later, it can't be answered right now," he told reporters, written Tuesday, July 4.

As is known, Mind ID is in the process of buying 11 percent of Vale Indonesia's shares and becoming the majority shareholder of the issuer.

Mind ID owns 20 percent of Vale Indonesia's shares. Vale Indonesia in the process of divesting further shares by 11 percent.

This is to fulfill the requirements for the extension of the work contract which will expire on December 28, 2025, which is at least 51 percent of the shares controlled by the Indonesian side.

However, Pahala has not been able to confirm whether the divestment process will allow Mind ID to own 51 percent of shares.

"If 51 percent feels difficult, but we will talk about how many," he said.

Previously, it was reported that the Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed the latest news about the plan to increase MIND ID's shares in PT Vale Indonesia Tbk.

Erick said that the 11 percent release of Vale's shares for MIND ID was still in the negotiation stage.

According to him, the addition of government shares through state-owned companies in Vale Indonesia is the state's right.

Erick assessed that after Indonesia's additional commodities were managed by foreigners for decades, it was time to share it with the state.

For your information, Vale Indonesia is a nickel mining company that is owned by foreigners. The company has been operating in Sulawesi since 1967.

In 1990, divestment was carried out as Vale Indonesia's shares through the Indonesia Stock Exchange (IDX). Then, in 2020, MIND ID is new.

"We are not anti-investigating foreigners. But, I also hope that if indeed those who already have how many tens of years but are not optimal, it is time to also share with the state," he said when met at the DPR Building, Parliament Complex, Senayan, Jakarta, Thursday, June 15.