PT Inalum to be parent company of mining holding company

Jakarta (ANTARA News) – PT Inalum has been confirmed to be the parent company of a state-owned mining holding company to be established in 2017.

“The finalization of the process of establishment of the state-owned mining holding company is being intensified. PT Inalum will be the parent company so that the formation of the holding company could be fast, optimal, and controllable, because 100 percent of PT Inalum shares belong to the state,” state enterprises ministers deputy for mining business, strategic industries, and media, Fajar Harry Sampurno, said at his office here on Wednesday.

In line with the road map of state enterprises for the 2005-2009 period, the establishment of a mining holding company has been the governments policy to control reserves and resources of minerals and coal, carry out downstream industrial development, increase the use of local contents in mining industries, and build a world-class company.

Four state-owned mining companies, namely PT Inalum, PT Bukit Asam Tbk., PT Aneka Tambang Tbk., and PT Timah Tbk, will be included in the holding company.

PT Inalum will be the parent company of the new holding company. PT Inalum holds 65 percent of Aneka Tambangs shares; 65.02 percent of Bukit Asams shares; and 65 percent of PT Timahs shares, while the government one A Series has share in each of the companies.

“The policy to build a holding company to strengthen state-owned mining companies has been taken to respond to various challenges in the future. It is hoped that the new holding company will be among Fortune Global 500,” he noted.

He stated that the government expects the establishment of the holding mining company to increase state revenues from tax, royalties, and dividends.

The new company is also expected to be able to develop upstream and downstream mining industries, reduce imports of raw materials, and increase the added value.

“With bigger tax and royalty paid to the government, it is expected that it will result in a multiplying effect. Thus, various processed minerals products may be produced and various downstream projects may be implemented,” he noted.

Deputy for restructuring and business development of the state enterprises ministry, Aloysius K Ro, remarked that the main aim of the establishment of the holding company is to build a strong and competitive company.

He stated that the process had been started by transferring the shares of four state-owned companies to PT Inalum through the formation of an operational holding company.

“Later, a strategic holding company will be set up in which PT Inalum, as the holding company, will spin off its operational activities,” he added.

Aloysius asserted that the mining holding company would focus on activities for the development of energy sources, increasing mineral added value, and sustainable investment.

“One of the preparations to be made soon is to make the mining holding company to be the entry point for the state-owned company to take over the divestment of up to 51 percent of PT Freeport shares,” he revealed.

Source: Antara News