Govt to take over PT Inalum
Tuesday, June 25 2013 - 01:34 AM WIB
Coordinating Minister for the Economy Hatta Rajasa said on Monday that the government had decided to take over full control of PT Indonesia Asahan Aluminum (Inalum) from Japanese consortium Nippon Asahan Aluminum when the latter?s 30-year contract to manage the company expires in October.
He said that the government has allocated over Rp 7 trillion (some US$751.8 million) funds in the state budget to finance the acquisition.
"The talks between the two sides (Indonesia and the Japanese consortium) have reached an agreement on the take over. In October, it (Inalum) is going to be ours," Hatta told Petromindo.com at the State Palace. The minister said that after the take over, PT Inalum would become a state-owned firm.
Inalum was set up in 1976 through an agreement between the government and its Japanese counterpart. The company runs the only aluminum smelter in Southeast Asia, in Asahan, North Sumatra, and utilizes hydropower plants Asahan I and Asahan II as its prime energy source.
Editing by Reiner Simanjuntak