Minister says agreement reached on Inalum price

Minister of Industry MS Hidayat said that the government?s team has reached an agreement with a Japanese consortium on the acquisition price of the giant aluminum smelting company PT Indonesia Asahan Aluminium (Inalum).

The Kompas daily quoted the minister as saying Thursday that the government will pay US$556.7 million for the 58.8 percent shares of Inalum, which operates Southeast Asia?s only aluminum smelter, held by Nippon Asahan Aluminium (NAA), a consortium of 12 Japanese firms.

NAA handed over the control of Inalum early in November to the government, which already owns the remaining shares, after its contract ended end of October. The government and NAA, however, have been engaged in months of dispute over the price of acquiring the 58.8 percent shares. On November 11, Hidayat said that the two sides reached an agreement on a preliminary price of $556 million for the Inalum shares.

?There has been a price agreement at $556.7 million. Currently discussions are progressing on the termination agreement. There?s no need for arbitration,? Hidayat said.

NAA declined to comment. A source with direct knowledge of the mattter confirmed the agreement on pricing but said the deal had still to be ratified by both sides. However, he said the official signing was expected in a week or two, The Jakarta Post reported. (*)