Govt to establish Indonesian Resources Company in early 2007

The government will establish a holding company, Indonesian Resources Company (IRC) in the first semester of 2007 following the completion of a study on the holding company, Koran Tempo reported Monday.

Deputy Minister for State Enterprises? Restructuring Affairs Division Mahmuddin Yasin said that efforts were underway to determine a number of options for the new company, such as in regards to the status of the holding company, the company would be publicly listed or not.

?If the company is publicly listed, then this will mean that the shares will be sold to the public, with the government?s majority share ownership retained? he said.

The holding of state mining firm will involve three mining firms PT Aneka Tambang Tbk, PT Timah Tbk and PT Tambang Batubara Bukit Asam Tbk.

The study on the establishment of the mining holding company has drawn market players? attention, especially because the new company will manage 65 shares owned by the government in the three mining firms. This excludes government?s 9.36 percent shares and 41.13 percent in copper and gold company PT Freeport Indonesia and PT Asahan Aluminium (Inalum) respectively.

The daily sources at the government said that the study on the IRC also include the probability of transferring the management of the government?s shares in PT Freeport Indonesia and PT Inalum.

The government also conducted a study on the transference of the mining authority from the two firms to the IRC for similar reasons - to give an added value to the holding company. (*)