Erick Thohir Affirms Vale's Mandatory Divestment

TEMPO.CO, Jakarta - Indonesian SOE Minister Erick Thohir asserted why nickel mining giant PT Vale Indonesia must relinquish larger shares to the country’s state-owned mining holding Mind ID. This divestment, he said, has to be carried out by national companies, including Freeport.

“My position is clear that we want Vale to be more open about ownership. I'm not pushing [Vale to relinquish] 50 percent shares, maybe 30 percent. What I'm pushing for is the responsibility to relinquish it,” Erick said in a press conference in Jakarta, Tuesday, August 1, 2023. 

According to him, the divestment process of Vale Indonesia’s shares by Mind ID has not been completed yet.

Vale surely has the right to have a part of the shares. However, when the contract expires, some of the shares must be returned to the state. “Freeport did it. National entrepreneurs did it, why Vale does not do so? There should be no exclusivity,” Erick said.

He mentioned that many potential investors now aim to invest in the nickel sector. “Where have they been for decades? What does it mean? I take that position, [the shares must be] relinquished.” 

Erick said it is necessary to build trust with foreign investors. However, the government eyes trustworthy foreign investors; those who are responsible and possess the desire to contribute to the people of Indonesia.

This means investors do not only take licenses and then neglect them. “The second process is: when the negotiation starts, they need to relinquish the shares first, then we will negotiate what percentage we have to take,” Erick Thohir concluded.

ANTARA

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