Minister of Investment /Head of Investment Coordinating Board, Bahlil Lahadalia, said his ministry is verifying the governance of PT Vale Indonesia 's investment before granting the special mining business permit for the company.

"Now it's in our department to check the governance of the investment. If all the documents are clear, there will be no problem," Bahlil said during the Idul Fitri celebration at his official residence in Jakarta on Friday, April 12, 2024. 

He added that the Minister of Energy and Mineral Resources has sent documents needed for the Investment Ministry /Investment Coordinating Board to issue permit extension for PT Vale Indonesia. 

Bahlil also said that there is a posibility that documents of permit extension will be signed on a working day after end of the long holiday of Idul Fitri.

The request to extend Vale’s working contract (KK) to a Special Mining Business License (IUPK) has been evaluated, involving aspects of administrative, technical, environmental, financial, and performance of the company. 

“Regarding the issuance of the decree on special mining business license for PT Vale Indonesia, the Minister of ESDM has conveyed the draft of the IUPK decree for PT Vale Indonesia to the Minister of Investment/Head of BKPM through a letter No. T-154/MB.04/MEM.S/2024,” Bahlil told a hearing with the House of Representatives Commission VII on April 3, 2024.

This draft submission serves as a precursor to granting the IUPK as a continuation or extension of Vale’s contract. The IUPK will be granted according to the request made by PT Vale Indonesia, which is around 20 years. The extension of this permit aligns with the recommendations from the Ministry of ESDM, not the Ministry of Investment. PT Vale Indonesia’s IUPK is set to expire in December 2025. With the extension, the IUPK will last until 2045.

It was previously reported that PT Vale Indonesia (INCO) is committed to completing investments in mine development and smelter construction outlined in the Special Mining Business License (IUPK) plan. Minister of ESDM, Arifin Tasrif, revealed that INCO will invest approximately US$11.2 billion or around Rp178.34 trillion for mine development and smelter construction in Sulawesi. The mineral and coal authority has set a deadline for realizing this investment between 2026 and 2029.