Govt to dissolve Asahan Authority

The government will dissolve the Asahan Authority, a special governmental agency tasked in the past to supervise PT Indonesia Asahan Aluminum (Inalum), following the takeover of the firm by the Indonesian government, according to a minister.

The government officially turned Inalum into a state-owned enterprise in April of last year after acquiring the interest of Japanese consortium Nippon Asahan Aluminium Co. The firm was established in 1976 a joint venture between the Indonesian government and the Japanese consortium to operate a hydropower plant and aluminum smelter in North Sumatra with the Japanese consortium holding the majority interest.

Along with the firm, the government established Asahan Authority to serve as a bridge between Inalum and the government. This agency was tasked to handle various matters for the sake of the company, including tax payment and permit processing.

Coordinating Minister of the Economy Sofyan Djalil said since Inalum has become a SOE, the firm can now handle everything previously handled by Asahan Authority.

The government will issue a regulation by July at the latest on the dissolution of the agency, he said. (*)