JAKARTA - President Joko Widodo alluded to the fate of the contract extension by PT Vale Indonesia Tbk (INCO) which will end in 2025. Jokowi said that this contract extension process is still in the discussion and calculation stage and is being discussed between related ministries. "Vale is still in the process of calculating and in the calculations of related ministries and will be announced soon," said Jokowi quoted from the Presidential Secretariat Youtube, Thursday, March 30. He said, if this extension process is expected to bring the maximum benefit to the welfare of the people. "We want the maximum benefit for the people and the state. It has not been decided yet to be in the calculation, in relation and calculation," he added. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that Vale has an obligation to divest its shares by 11 percent. This is an obligation to extend the Special Mining Business License (IUPK). "So Vale has an obligation (invested) of 11 percent," said Arifin at the ESDM Ministry Building quoted on Saturday, February 25. Arifin said, later the government will consider the share sharing of the results of such divestment between BUMN mining and regional companies. "The distribution will be able to go to the regions and BUMN. It needs to be consolidated," added Arifin. According to him, the distribution of shares to the regions must be carried out in order to bring benefits to the area where Vale was established. He gave an example of PT Freeport Indonesia, which also released its share rights by 10 percent to BUMD Papua.
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