Thursday, 28th August 2014

Inalum to be back to Indonesia

Senin, 8 Juli 2013 20:15 WIB | 712 Views
Inalum to be back to Indonesia
MS Hidayat. (ANTARA)
Jakarta (ANTARA News) - PT Indonesia Asahan Aluminium (Inalum) will be back to the Indonesian government on November 1, 2013, industry minister MS Hidayat said.

"We have agreed on October 31, 2013 (the contract would end) and all Inalum assets would be handed over to the Indonesian government. On October 31 physically it will be back to the government while the assets transfer would be done on November 1," he said after a meeting at the office of the coordinating minister for economic affairs here on Monday.

He said Inalum products would later be used to supply companies in Indonesia, adding the company would become a state-owned company.

He said the government is now preparing a budget for the acquisition of the company now still under the name of Nippon Asahan Aluminium (NAA) worth Rp7 trillion.

"The government has prepared it. Hopefully it will not be used up," he said.

Hidayat said a master plan would be made for an Inalum industrial zone.

He said the company`s production capacity would be raised from 260,000 tons to 450,000 tons. "We will see the road map and also the port capacity," he added.

He said Inalum production would be prioritized to meet domestic needs that reach more than 300,000 tons.

So far 60 percent of the company`s production is exported while 40 percent is for local needs, he explained.

"Later the domestic needs would be prioritized," he said.

Asked whether Inalum would be integrated into the Sei Mengkei Economic Zone, the minister said it still has yet to be discussed.

"It has not been in such detail. We are still concentrating ton settling the assets. However it was raised just now," he said.

Hidayat admitted there were still differences with regard to the value of the assets before and after revaluation.

Japan wishes the value is determined after revaluation while the government wants it to be set before revaluation, he said.

"Meanwhile BPKP (state audit agency) also has its own calculation and we will ask them to adjust it," he said.

Hidayat declined to comment that the difference reached US$400 million, "I would not mention figures as it is still under negotiations," he said.

(Reporting by Juwita Trisna Rahayu/H-YH/B003)