Home ECONOMY Government Claims Public Shares of Vale (INCO) Owned by Indonesia, Is it True?

Government Claims Public Shares of Vale (INCO) Owned by Indonesia, Is it True?

Government Claims Public Shares of Vale (INCO) Owned by Indonesia, Is it True?

Jakarta, Timerilis.com – Minister of Energy and Mineral Resources (ESDM) claims that Indonesia currently owns 40 percent of PT Vale Indonesia (INCO) shares with 20 percent ownership of PT Mineral Industri Indonesia (MIND ID) and through public shares listed on the Indonesia Stock Exchange (IDX).

“Vale is already willing to release its shares again so that the total shares that have been released will be 54 percent,” Arifin said at the Ministry of Energy and Mineral Resources, Friday (4/8/2023).

The percentage of INCO’s divestment to Indonesia is 14 percent through the latest agreement, the additional 14 percent will make MIND ID the majority shareholder.

“We have already divested 40 percent, now another 14 percent, so it’s already 54 percent,” Arifin explained.

Currently, Vale Indonesia’s shareholders consist of Vale Canada Ltd (43.79%), Sumitomo Metal Mining (15.03%), PT Indonesia Asahan Aluminum (20%), Vale Japan Ltd (0.55%), the public (20.49%) and Sumitomo Corporation (0.14%).

Based on the data contained in the 2022 Annual Report, as of December 31, twenty companies were holding Vale Indonesia shares owned by foreign and local companies.

Overall, the number of Vale shareholders is 30,457 shareholders. This number decreased by 32.16 percent from 2021, which was 44,894 shareholders.

From the data collected, local ownership is only 29.02 percent and foreign ownership is 70.97 percent of all INCO shares on the IDX.

Referring to Article 147 of Government Regulation (PP) 96 of 2021, holders of Mining Business Licenses (IUP) and Special IUPs are required to offer share divestment directly to the Central Government, Regional Governments, BUMN, and BUMD.

If PT Vale Indonesia’s Contract of Work extension application is approved by the Government, PT Vale Indonesia is obliged to divest its shares to fulfill the percentage of obligations following the regulations. PT Vale’s CoW will expire in December 2025. Vale has a KK license with an area of 118,017 hectares, which has been valid since December 29, 1995.

PT Vale Indonesia first released 20 percent of its shares through the Indonesia Stock Exchange and became a public company in 1990. Through a letter from the Director General of General Mining No. 1657/251/DJP/1989 dated August 23, 1989, the Indonesian government decided not to buy the company’s shares. (Eva/Rd)