Member of the Gerindra Faction in Commission VII of the Indonesian House of Representatives Bambang Haryadi, revealed that there is information indicating that 20 percent of PT Vale Indonesia’s shares, which should have been divested or transferred to domestic companies, were instead transferred to a ‘fake’ company. 

As previously reported, Vale is planning to divest 51 percent its share to an Indonesian shareholder in accordance with law and regulations. However, Haryadi received information that 20 percent of these shares did not reach the intended domestic companies.

Referring to Minerba One Data Indonesia (MODI), the shareholders of Vale Indonesia consist of Vale Canada Limited with 43.79 percent, Sumimoto Metal Mining with 15.03 percent, PT Mineral Industri Indonesia or MIND ID with 20 percent, Vale Japan Limited with 0.55 percent, Sumimoto Corporation with 0.14 percent, and the public with 20.49 percent.

Moreover, according to the information that Bambang acquired, there are indications that the ownership of those shares returned back to Vale itself through the pension fund of PT Sumimoto. As a result, he perceives that the shares have returned to the hands of a foreign entity disguised as a domestic company.

Energy Ministry’s response

In response, Energy and Mineral Resources Minister Arifin Tasrif has planned a meeting with the Financial Services Authority (OJK) to scrutinize the structure of public share ownership in PT Vale Indonesia.

He also mentioned that his ministry will conduct a thorough examination of the procedures related to the Indonesian stock market, in accordance with the OJK regulations.

Ongoing divestment process

Furthermore, Arifin stated that the divestment process of Vale’s shares to MIND ID is still ongoing. The Contract of Work (CoW) of PT Vale Indonesia is set to expire on December 28, 2025.

The share divestment to the government is a requirement for Vale to proceed with the extension of the CoW into a Special Mining Business Permit (Izin Usaha Pertambangan Khusus or IUPK).

To acquire the IUPK, Vale Indonesia is required to divest 51 percent of their shares to various Indonesian entities, including the Indonesian government, regional governments, state-owned enterprises (BUMN), regional-owned enterprises (BUMD), as well as national private enterprises.

Regarding this, Arifin emphasized that Vale claimed to have divested 40 percent of its shares, with 20 percent was divested to MIND ID, and the remaining 20 percent was officially divested to the government. 

However, due to the government’s lack of response, the government officially communicated to Vale that the remaining shares should be made available to the Indonesian public.