The divestment process of PT Vale Indonesia (INCO) shares has not been completed, yet the Ministry of Energy and Mineral Resources (ESDM) ensures that process is still ongoing.
“The government is still discussing the divestment process,” Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana said as quoted by Kontan on Thursday, January 25, 2024.
However, Dadan did not detail further the ongoing bargaining process of the divestment plan.
Deputy Chairman of the House of Representatives (DPR) Commission VII, which supervises energy and mineral resources, Eddy Soeparno said he did not know the details of the ongoing commercial agreement between INCO and the mining industry holding, MIND ID.
Eddy explained that the House’s Commission VII would leave the negotiation process to the two companies as INCO’s divestment is form of business-to-business agreement between the two parties.
“The value of the divestment is entirely a B2B decision. We would just approve what the two business actors will do,” said Eddy.
Member of the House’s Commission VII Mulyanto added that according to results of the meeting with the Minister of Energy and Mineral Resources on the divestment of Vale, it is expected that the state will become the majority shareholder by controlling 51 percent of the shares.
In addition, MIND ID must be given the rights to control the company both operationally and financially. “Otherwise, Vale’s mining licence will not be extended,” Mulyanto said.
