Minister Arifin Ensures Vale Indonesia's Share Divestment Is Decided At The End Of July

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif ensured that the process of releasing the shares of PT Vale Indonesia Tbk (INCO) will continue and will be decided at the end of July 2023.

Later this divestment will occur with the MIND.ID Mining SOE holding as a potential buyer of 14 percent of divestment shares.

"God willing, by the end of this month the certainty will be completed or not, because this divestment process must take place as required in the regulations. That must be done by Vale, after that there are conditions that must be agreed upon by both parties, now that must be resolved with both parties," said Arifin, quoted Monday, July 17.

Arifin added that currently the basic principles or principals of the principle have been agreed upon, and PT Vale will provide offers at a better price.

"Now the basic principle has been agreed upon. Indeed, business to business, after it is agreed that Vale will also prepare an official for what they have invested in and indeed he (Vale) will provide a better price for MIND.ID," added Arifin.

Regarding the company's operational controllers, Minister Arifin explained that it depends on the shareholder's most important agreement which is best for the company.

"If it is operational, there are shareholders, it should be agreed on how to take their votes for the good of the company," explained Arifin.

The Ministry of Energy and Mineral Resources did not provide a special request regarding the divestment of the shares because the divestment process, according to Arifin, was carried out in a business manner between the two companies (business to business/B2B). However, if later Vale uses the market price to determine the value of the divestment, Arifin hopes that Vale can provide a discount on the price to MIND ID.

"Even if later the price uses a market mechanism, there must still be a discount. And if you use a reimbursement cost, basically it's an agreement between two parties and the Ministry of Energy and Mineral Resources does not provide any direction because it's B2B," said Arifin.

In accordance with Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba), PT Vale Indonesia whose Work Contract concessions will expire on December 28, 2025, is required to fulfill share divestment of 51 percent in stages to the Central Government, Regional Government, BUMN, regional-owned enterprises, and/or national private business entities.