Indonesia to merge two mining firms, initial step in forming holding group
By The Jakarta Post News Desk
Friday, March 10, 2017
The government will merge PT Alumunium Development Corporation (Aldevco) into state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) as part of the preparation for the latter to be a leader of the holding company in the mining sector.
Finance Ministry director general of state wealth Sonny Loho said the government would own Aledvco after winning the legal battle. "At least by now Aldveco’s status has changed into a state asset," he said on Tuesday as quoted by tempo.co.
Finance Ministry state wealth management and information system director Indra Surya said the ministry had conducted initial discussions with Inalum.
The scheme was chosen as Aldevco subsidiary, PT Asahan Alumunium Alloys (AAA), which is a raw aluminum processing plant, is already jointly owned by Inalum.
Indra added that changing Aldevco’s status would take a while as the Finance Ministry had to insert state capital and obtain parliamentary permission.
Aldevco president director Aldevco Middyningsih stated that Aldevco’s assets currently stood at Rp 137.8 billion. "We are happy to give the rights on our stock to the government and to cooperate," he said.
Inalum finance director Oggy Ahmad Kosasih refused to comment further on the merger. “It is still under discussion," he said.
Discussions on the establishment of state enterprise holding in the mining sector have increased significantly recently. Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan has said that Inalum would lead the consortium for the divestment of 51 percent of shares from mining giant PT Freeport Indonesia.