Govt to Establish Holding Companies for Mining SOEs
Date 3 April 2017
The Government through the Ministry of State-Owned Enterprises (SOEs) ensures the establishment of Holding Companies for Mining SOEs in line with the finalization of a number of supporting regulations. It is expected that the establishment of Holding Companies for Mining SOEs strengthens the control of abundant mineral and coal resources and reserves in Indonesia run by the Ministry of SOEs. “The Holding is also prepared to become a world-class company,” said Deputy for Mining, Strategic Industries and Media of the Ministry of SOEs Fajar Harry Sampurno, in Jakarta, in a press release circulated on Monday (3/4) afternoon.
Fajar explained that one of the goals of mining sector SOEs is to run the program of the downstream and local content, and make SOEs as one of the world-class companies. He added that the synergy of mining SOEs will also work on a number of big projects, which is costly. “Holding companies for mining SOEs is a solution to the magnitude of these costs,” he said.
Meanwhile, Deputy for Restructuring and Enterprise Development of the Ministry of SOEs Aloysius K. Ro explained that of the six planned holding, mining sector is the most readily realized. “A number of regulatory issues that still prevail will continually be drafted and discussed in the Ministrys meeting. Likewise, further discussion on the legal umbrella for holding of the Government Regulation Number 72 of 2016,” Aloysius explained.
According to Aloysius, the legality process of Holding for Mining SOEs has been in the harmonization stage carried out by the Ministry of Law and Human Rights. “We continue to make intensive communication with various groups and stakeholders related to the Government Regulation Number 72 of 2016 as a form of responsibility to the public,” he stated.
Related to the number of projects that will be worked on synergy of Mining SOEs, state-owned coal miner PT Bukit Asam CEO, Arviyan Arifin, said the project will be run by PT Bukit Asam and state-owned diversified miner PT Aneka Tambang (Antam). “In order to increase the company’s production capacity which is still 5 percent of the total national production to 56 percent, the development of coal-fired power plant (PLTU) with substantial funds is required. Bukit Asam will increase the PLTU of 2×125 megawatt (MW) in Tanjung Enim to 5,000 MW until 2026, South Sumatra 8 to 2×600 MW and South Sumatra 9 and 10 will be increased to 3,000 MW,” Arifin said.
Finance Director of state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum), Ogi Ahmad Kosasih, added that the development vertically to upstream to build the Smelter Grade Alumina (SGA) will be carried out together with Antam. “Currently, Inalum is still importing alumina. The SGA products will be absorbed by Inalum,” he said.
Inalum is also working with state-owned oil and gas company Pertamina and other investors to build Calcine Plant for smelting alumina. Meanwhile, in downstream, we build aluminum plate and alloys to be completed in May 2017. All projects, according to Ogi, are targeted to be completed before 2020.
Meanwhile, Antam CEO Teddy Badrujaman said it plans to produce pure gold bullion. Antam will also build the SGA and Chemical Grade Alumina (CGA).
So far, Teddy further explained, CGA has been completed while the SGA will be built in North Kalimantan and West Kalimantan. Antam also plans to build another ferronickel plant in East Halmahera with a capacity of 13,500 tons of ferronickel. (EM/Public Relations of the Ministry of SOEs/ES) (MUR/YM/Naster).