MIND ID to Control 34 Percent of Vale Shares; Erick Thohir Preps New Boards

TEMPO.CO, Jakarta - Indonesian State-Owned Enterprises (SOE) Minister Erick Thohir has shed light on the share divestment process of PT Vale Indonesia Tbk. (IDX: INCO) to MIND ID, the holding company of SOEs engaged in mining. Upon completion of the process, MIND ID will hold a 34 percent stake in Vale's shares, and he will prepare the formation of a new board of directors.

“The new board of directors will definitely have representatives from our side, because we are the largest shareholder with 34 percent, and the rest is [owned by] the public,” Erick said at the Danareksa Tower in Central Jakarta on Tuesday, February 20.

Vale Indonesia is required to divest its stake in order to extend its mining license, which is set to expire in 2025. Vale will reportedly sell its 14 percent stake to MIND ID.

Once Vale enters the SOE ecosystem, Erick assessed that the most crucial thing is to accelerate investment and industrial downstream, as he deems the programs have been slow to date.

He further opined that the divestment is an excellent momentum to encourage downstream activities given the growing interest in electric vehicles in the country. He alluded to the public's enthusiasm at the recent national automotive exhibition called the Indonesia International Motor Show.

“I see that the demand for electric cars is growing greatly, which means this is our chance to accelerate Vale's downstream investments,” he said.

The government planned to discuss share prices on February 26. Erick hoped that the signing would take place at that meeting, which will be witnessed by four ministers, including Erick Thohir, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Investment Bahlil Lahadalia, and Minister of Energy and Mineral Resources Arifin Tasrif.

Apart from MIND ID, Vale Indonesia's shareholders are Vale Canada with 33.29 percent, Sumitomo Metal Mining with 11.53 percent, Vale Japan with 0.54 percent, and public shares accounting for 20.64 percent.

RIANI SANUSI PUTRI

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