Bahlil Lahadalia, the Minister of Investment and Head of the Indonesia Investment Coordinating Board (BKPM), has disclosed details regarding contract extension of PT Vale Indonesia’s (INCO), expecting it to be completed after Idul Fitri.
“Yes, now it’s in the process, it won’t be long because as you know, I just returned from Umrah (minor haj) pilgrimage and took a few days off. After this [Idul Fitri] holiday, God willing, it will be completed,” Bahlil told reporters at the Presidential Palace complex on Monday, April 8, 2024.
It’s worth noting that the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, confirmed handing over the draft of the extension decree for Vale Indonesia’s contract to Bahlil Lahadalia.
The request to extend Vale’sworking contract (KK) to a Special Mining Business License (IUPK) has undergone evaluation concerning administrative, technical, environmental, financial, and company performance aspects.
“Regarding the issuance of the IUPK decree 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 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.
Andriansyah Chaniago, Vice President Director of Vale, said that the substantial investment outlined in the IUPK plan also includes a new project, the SOA HPAL, with an investment value of Rp30 trillion (plant and mine).
“Yes, that’s the new addition, all areas must have development plans, including that one,” Andriansyah said on April 3, 2024.
