Jakarta, Klinik Farma – Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the process of selling shares of PT Vale Indonesia Tbk (INCO) to mining company SOE Holding MIND ID is almost completed. At the very least, the government will decide on this sale in August 2023.
Arifin denied there were problems that stalled the Canadian nickel company’s whitewashing process. There are a few more things to do, he said.
“We still need to finish it, so hopefully it will take some time, a decision will be made this month,” Arifin said at the Presidential Palace Complex in Jakarta on Tuesday (August 8, 2023).
However, Arifin does not want to disclose the value of shares yet. He reasoned that this was a business relationship between MIND ID and Vale.
“This is between BUMN, business between MIND ID and Vale,” Arifin said.
Earlier, Arifin reported that the share of shares that Vale Canada Ltd (VCL) will transfer to MIND ID is 14%.
President Jokowi also emphasized that there are no obstacles in terms of the sale, and negotiations are still ongoing, so that all parties feel they have won.
“Nothing, but negotiations are still underway, so there can be no mistake. Everyone should feel like a winner. Everyone should feel invited,” Jokowi said during a meeting following the inauguration of the Indoor Multi-Purpose Stadium (IMS) or Indonesia Arena in Banga. Karno Gelora District, Jakarta, Monday (07/08/2023).
The decision to sell Vale shares is also inseparable from the end of the employment contract with the nickel company in December 2025.
Under the mandate of Law No. 3 of 2020 on Mining and Coal Mining (UU Minerba), Mining Works Contract Holders (KK) who wish to obtain an extension to become a Special Mining Permit ( IUPK) must transfer their foreign shares to third parties. Indonesia at least 51%.
The contract with Vale Indonesia expires in December 2025. If you want to receive an operational extension, then Vale must transfer at least 51% of its shares to Indonesia.
The Indonesian side’s net stake in PT Vale Indonesia is currently only 20% through MIND ID. Meanwhile, PT Vale Indonesia’s majority shareholder, namely Vale Canada Limited, is 43.79%, Sumitomo Metal Mining Co Ltd is 15.03%, and the remainder is held by the public through the Indonesian Stock Exchange at 21.18%.
However, the majority of shareholders on the exchange are still owned by foreigners, namely 59.47%.
Be careful, there is a suspicion that there is a shell company in the shares of Vale.