NAA reaches agreement with govt over Inalum price

Following lengthy rounds of negotiation, the Nippon Asahan Aluminium (NAA) has finally agreed to transfer its entire 58.8 percent shares in PT Indonesia Asahan Aluminum (Inalum) to the Indonesian government for US$558 million, Investor Daily reported on Friday.

Minister of Industry MS Hidayat was quoted by the paper as saying that NAA was scheduled to sign Friday the ending of the cooperation agreement in operating Inalum, which owns a giant hydro power plant and alumina smelter in North Sumatra.

NAA will end its 30-year contract in running Inalum end of this month. The government initially offered only about $390 million for the 58.8 percent share in Inalum, while the Japanese consortium demanded $650 million.

Hidayat said that per November 1, 2013, Inalum will be 100 percent owned by the government. He added that the acquisition price of the Inalum shares has been approved by the House of Representatives. (*)