PT Inalum Officially Becomes Holding SOE Mining Industry

INDUSTRY.co.id - Jakarta - Indonesia Limited Liability Company Asahan Inalum officially became the holding of State-Owned Enterprises of the mining industry after the results of the extraordinary general meeting of PT Antam Tbk, PT Bukit Asam Tbk and Timah Tbk approved the change of status from Persero to non-Persero.

"Today (29/11), we announce that the holding of mining has been formally established, namely PT Timah, PT Bukit Asam, and PT Antam.Now, the four of us have become brothers, determined to cooperate," said President Director Inalum, Budi Gunadi Sadikin in Jakarta, Wednesday (29/11/2017).

He is optimistic that the formation of this state-owned mining company can make the Indonesian mining industry competitive and equal to similar big companies in the world.

He stated that this step is in accordance with Government Regulation (PP) No. 47 of 2017 concerning the Addition of Equity Participation of the Republic of Indonesia into the Share Capital of PT Inalum (Persero).

"Establishment of holding BUMN mining aims to increase business capacity and funding, management of natural resources of mineral and coal, increase value added through downstream and increase local content, and cost efficiency of synergy," he said.

In the short term, he said that the new holding will soon conduct a series of corporate actions, including the construction of smelter grade alumina plant in Mempawah, West Kalimantan with capacity up to 2 million tons per year, the ferronickel plant in Buli, East Halmahera with 13,500 tons of nickel ferronickel per year, and the construction of steam power plants at a downstream mill down to 1,000 MW.

In the medium term, continued Budi Gunadi Sadikin, holding state-owned mining company will continue to acquire and explore mining, integration, and downstream areas. While in the long run, this holding will be included as one of the companies listed in 500 Fortune Global Company.

President Director of PT Aneka Tambang Tbk, Arie Prabowo Ariotedjo, said that the holding of state-owned mining company will strengthen the company's position in order to create added value and optimize mineral reserves.

"Antam will synergize with Inalum, Timah and Bukit Asam to jointly implement investment strategy, exploration, human resources development, and development and research," he said.

He said that as many as 15.619 billion state-owned Series B shares in PT Antam Tbk were transferred to Inalum in addition to state equity participation. Thus according to PP 47/2017 shares of B series of PT Antam Tbk will be owned by Inalum as much as 65 percent and 35 percent public. While the series A shares of PT Antam Tbk which is a controlling share is still owned by the state.

Meanwhile, President Director of PT Timah Tbk, Mochtar Riza Pahlevi Tabrani, said that with the holding of this holding, the skills of HR skills are also improving because it will exchange experiences.

"Efficiency will create financial performance for the better," he said as quotedAntara.

He delivered 4.841 billion Series B shares owned by PT Timah Tbk or 65 percent, transferred to Inalum in addition to state equity and A series shares of PT Timah Tbk which is a state owned controlling shareholder.

President Director of PT Bukit Asam Tbk, Arviyan Arifin also said that the existence of this holding will certainly accelerate the vision of the company into a world-class energy companies in the future. With synergy, each holding member company supports each other to be the best.

He presented 1.498 billion Series B shares owned by PT Bukit Asam Tbk, or as much as 65.02 percent, transferred to Inalum in addition to state equity and A series shares of PT Bukit Asam Tbk which is a controlling share owned by the state.