Govt takes over Inalum assets, operation
Friday, November 1 2013 - 02:40 PM WIB
The government on Friday officially took over all asset and operation of PT Indonesia Asahan Alumunium (Inalum), but disagreed with the Nippon Asahan Aluminium (NAA), the former operator and controlling shareholder of the firm, over share transfer issue, a minister said.
On the transfer, both the government and the NAA agreed with the share transfer value of US$558 million, but the government wanted the value to be subject to audit, which NAA rejected, Industry Minister MS Hidayat said.
?We agreed to settle it through (international) arbitration. But, based on the master of agreement, per Nov. 1, 2013, or today, all the assets already become Indonesian government?s,? he told a press conference at the State Palace after reporting the result of the discussion with Japan?s side to President Susilo Bambang Yudhoyono.
Minister Hidayat said that the legal process would not hamper the operation of the firm.
Nevertheless, the minister said that he was ready to discuss face-to-face with the Japan?s side over the share price dispute.
?Yes of course any time,? he said when asked whether he was ready to directly talk with the Japan?s side,? I told ambassador (of Japan) last night, if you want to discuss with me, I am very open to discuss it.?
Minister Hidayat said that a consolidation would be made along with the finance ministry and state-owned enterprises ministry to replace the top management of Inalum with Indonesians, as it would become a state-owned firm.
An extraordinary meeting of shareholders would be conducted soon, said Hidayat.
Following the takeover, all the contracts on supply and exports would remain unchanged and they were now under the government?s control, said Hidayat.
Inalum?s plant, which is located in North Sumatra, has a production capacity of 250,000 tons of aluminum per year. Prior to the takeover, NAA, a Japanese consortium, owned 58.88 percent of the firm, with the remaining shares owned by the Indonesian government.
Editing by Johannes Simbolon