Government Controls Four Things In Holding Mine

INDUSTRY.co.id - Jakarta - The Indonesian government will retain control over the holding of state-owned mines in four aspects after the parent company was officially authorized by the end of November.

PT Antam Tbk (ANTM) President Director Arie Prabowo told media crew in Jakarta, Friday (24/11/2017) said the control was in the government's dwiwarna or Serie A stock.

"The Serie A shares control four things, namely the director of the commissioner and the board of directors, so it will remain from the government, not from Inalum," he said.

Second, Arie continued, is the change in capital structure. Third is the amendment of the articles of association that will be directly controlled by the government and the fourth concerning the divestment.

"So let's say if there is a question, cannot Inalum sell? No, it can still be (control) it in Serie A shareholders," he said.

PT Indonesia Asahan Alumunium (Inalum) will become the holding company of state-owned mining industry, while PT Aneka Tambang Tbk, PT Bukit Asam Tbk and PT Timah Tbk will become subsidiaries (holding members).

President Director of PT Bukit Asam Tbk (PTBA) Arviyan Arifin, on the same occasion, explained that although the government's shares in the holding company are transferred to Inalum, there are still dwiwarna shares in each holding member company.

The government currently holds a majority stake in the three state-owned mining companies that are also "go public", i.e. 65 percent in Antam, 65.02 percent in Bukit Asam and 65 percent in Timah.

"So even though 65 percent of the government's shares are being transferred, there is still a share of the government of Serie A which we call a dwiwarna share.The government's control over Antam, Bukit Asam, Timah and Freeport is 'double cover'," he said.

Full layered, continued Arviyan, namely from the direct government who owns dwiwarna shares and through Inakum which is 100 percent owned by the state. "So it has been 'double' government ownership," he said.

Matters related to public shares, Arviyan said the holding process has been known to the Financial Services Authority (OJK) and the Stock Exchange so that he believes there is no public interest disturbed by the action.

"It seems there is no public interest disturbed, let alone disadvantaged.With this holding we hope to strengthen each company.If the company is strong, investors happy and will be comfortable.Hopefully it has a positive impact to the stock price of each company," he said.

Deputy for Mining Business, Strategic Industries and Media at the Ministry of State-Owned Enterprises Fajar Harry Sampurno said the three holding members will be treated equally with SOEs for strategic matters.

Thus, the state retains control over the three companies, either directly through the dual color stock, or indirectly through PT Inalum as set forth in PP 72 of 2016.

The change of name with the loss of Persero also does not give the consequences of loss of state control and authority of service implementation to the public.

In the short term, the holding which will be officially approved on 29 November soon undertook a series of corporate actions including the construction of a smelter grade alumina plant in Mempawah, West Kalimantan, with capacity up to 2 million tons per year.

Then Ferro Nickel's factory in Buli, East Halmahera, has a capacity of 13,500 tons per year, and the construction of steam power plants at a downstream mill down to 1,000 MW.