The Energy and Mineral Resources Ministry is coordinating with the Ministry of Finance on concerted effort to increase the state revenue after the divesment of 14 percent shares of PT Vale Indonesia, a subsidiary of Vale Canada Limited (VCL).

"We have sent a letter to the Ministry of Finance," Secretary General of the Energy and Mineral Resources Ministry, Dadan Kusdiana, said on Friday, March 1, 2024.

PT Mineral Industri Indonesia (MIND ID), together with Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM) signed a share sale and purchase agreement for the divestment of PT Vale Indonesia (INCO) in Jakarta on Monday, February 26, 2024.

This agreement is a continuation of the Heads of Agreement signed on November 17th, 2023. MIND ID together with VCL and SMM have agreed on the acquisition of PT Vale Indonesia shares by MIND ID, amounting to 14 percent of the total share ownership of the company.

The agreement signing is a crucial step for PT Vale Indonesia to fulfill its divestment obligations, as required by the Mineral and Coal Mining Law. This is a necessary prerequisite for extending PT Vale Indonesia’s Contract of Work through a Special Mining Business Permit (IUPK).

Dadan said one of the requirements in the law regarding the awarding of the Special Mining Business Permit (IUPK) is an increase of state revenue.

"We want all parties to get the benefits. Government benefits is an increase in state revenues, the development of downstreaming industry, and Vale's business to improve. This is now being coordinated and will be decided by the finance ministry on how to tax it." he said.

According to him, the current low price of nickel will hardly impact state revenue from Vale Indonesia, while indicating that in developing Vale Indonesia, the government has set a target for the next few decades. "So, please do not make judgements today," Dadan said.

He added that the granting of Vale Indonesia's IUPK will not take a long time as the government has prepared long enough for its administration.