“So whether the share price is high or not, there will be room for negotiation available," Winarno said on Wednesday.

The average price of Vale's share is Rp 4,600 (29 US cents) per share in the last three months. While the current price of its share is Rp 4,300 per share.

In a negotiation, Winarno said, seller tended to set the price high and buyer want to garner lowest price. "That's normal," he said.

Divestment of Vale Indonesia’s shares is required as one of the conditions so that the extension of its mining contract to a Special Mining Business Licence (IUPK) can be carried out. PT Vale Indonesia’s Contract of Work will expire in December 2025.

Currently, Indonesia’s ownership in PT Vale Indonesia (INCO), among others through MIND ID, is 20 percent and around 21.18 percent is spread across the Indonesian stock market. This implies that in the case of the supplementary shares amounted to only 14 percent, MIND ID will possess a 34 percent stake in Vale’s shares.

Currently, Vale Canada Limited (VCL) retains the majority stake in INCO with 43.79 percent of shares, followed by Sumitomo Metal Mining Co. Ltd (SMM) holding a significant portion at 15.03 percent.

As previously reported, Chairman of the House of Representatives (DPR) Commission VII overseeing energy and mineral resources, Sugeng Suparwoto, says discussion on the final decision regarding shares acquisition of PT Vale Indonesia by Mining SOE Holding MIND ID is in stalemate due to bidding technicalities.

INCO has requested that the 14 percent stake to be transferred to MIND ID should be 1.5 times of the company’s book value. Meanwhile, MIND ID offered approximately 1.3 times of the company’s book value.

“MIND ID bid approximately 1.3 times. But the problem is how much is the exact value in terms of value, so as suggested by us in Commission VII, the government is now conducting due diligence. I think everything is fair,” Sugeng said on the sidelines of CNBC Indonesia’s Mining Zone event on Thursday.

Maintain Investment Climate

Acting Director General of Mineral and Coal at Energy and Mineral Resource Ministry Bambang Suswantono said Indonesia needs to maintain the existence of Vale Indonesia
investment here.

“First, because Vale has done environmental preservation quite well. We recognise that Vale is consistent in protecting nature. We see that it has a reforestation system, a reclamation system, and an extraordinary nursery,” Bambang said.

He also cited that President Joko Widodo has visited Vale Indonesia mining site.

"The beauty of Lake Matano, with a depth of 600 meters, is on Vale's side and the lake is not polluted at all," Bambang said.

He added being the only non-Chinese nickel smelter in Indonesia, Vale contributes to positive impression on investment in Indonesia as not all of the companies in nickel processing are from China.