Inalum appointed as parent of mining holding company

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) has been appointed as the parent company of a planned holding company that would group state-controlled mining firms.

This was said by Deputy for Mining and Strategic Industries at the Office of State Minister of State Owned Enterprises, Fajar Harry Sampurno, as quoted by reports on Wednesday. The ministry?s planto create a number of holding companies for state-owned enterprises (SOEs) including those operating in the mining sector was discussed during a limited cabinet meeting led by President Joko Widodo on Tuesday.

Harry said that under the planned mining holding company, Inalum will become the parent with subsidiaries including IDX-listed coal giant PT Bukit Asam Tbk (PTBA), IDX-listed tin giant PT Timah Tbk, and IDX-listed mining firm PT Aneka Tambang Tbk (Antam).

He said that Inalum was appointed as the parent of the holding company because it is 100 percent owned by the government. He added that the status of the subsidiaries will remain as publicly-listed companies and the planned creation of the holding company would not affect the public investors.

While, officials of Timah, Antam, and PTBA generally welcome the planned holding company, they said that the plan needs the approval of the company?s shareholders.

The ministry plans to create the holding company in a bid to increase the capacity of the mining firms such as in terms of raising funds for expansion programs, and to generate greater value added for the state.

Details of the planned holding company, however, remain sketchy. (*)