Minister Discuss Holding Company for Mining SOEs with Inalum
28 February 2017 07:26 WIB
TEMPO.CO, Jakarta - The Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has met with state-owned mining company PT Indonesia Asahan Alumunium (Persero) or Inalum. Also present at the meeting was PT Inalum president director Winardi Sunoto.
According to Luhut, the meeting discussed the process to establish a holding company for mining SOEs. The North Sumatra-based company explained its position before the establishment.
Read: Inalum to Take Over Freeport Management
“I asked about their total assets, we have to see their capability before they take over Freeport,” Luhut said at the Coordinating Ministry for Maritime Affairs compound in Central Jakarta on Monday, February 27, 2017.
Minister Luhut added that Freeport is not running greenfield exploration projects making it possible for Inalum to take over. “It’s easy to borrow money from banks, even easier for state-owned companies, the object to be taken over is also of good value.”
At present, the government is considering whether to take over Freeport via a holding company for mining SOEs or a particular mining SOE, Luhut added. There is a greater chance of succeeding because there is still room for negotiation with Freeport.
On possible Freeport’s divestment, Luhut said that even if the option is taken, it will be carried out gradually. He reasoned that it would be impossible to do it at once.
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