Mining Industry Indonesia (MIND ID) as a State-Owned Enterprise (BUMN) Mining Industry Holding (HIP) is optimistic that the reorganization between MIND ID and PT Indonesia Asahan Aluminium (Persero) (INALUM) will accelerate the downstream program in the national mining industry sector.
With the acceleration of the downstream program, the state's commitment to increasing the added value of mining commodities will be realized.
This optimism emerged after the Government of Indonesia issued Government Regulation (PP) Number 45 of 2022 and PP Number 46 of 2022 as a step of government blessing in the reorganization of MIND ID.
MIND ID Corporate Secretary Heri Yusuf said that the reorganization with the support of the Government of Indonesia will improve performance, both for MIND ID, INALUM, and other holding members.
With the improvement of performance, he hopes that MIND ID's grand vision to provide benefits to all stakeholders can be more easily realized.
"With this reorganization, MIND ID continues its role as a Strategic Holding company for the Mining Industry," said Heri in a written statement received by Kompas.com, Wednesday (12/14/2022)
The role in question is to increase the effectiveness of the implementation of various strategic activities that focus on efficiency.
Then, creating added value from the products of MIND ID group members, as well as improving risk management management, to monitoring the operational activities of MIND ID members.
"It is hoped that MIND ID will be better and more sustainable in making a more optimal contribution to all stakeholders," heri explained.
Karyawan PT Indonesia Asahan Aluminium (Persero) (INALUM).
The Indonesian government issued PP Number 45 of 2022 and PP Number 46 of 2022 on December 8, 2022.
The two government regulations are one of the inseparable parts of the series of HIP formation processes, which have so far had the MIND ID brand identity and legally become one with INALUM.
The PP is also the result of the collaboration of shareholders obtained through the Ministry of State-Owned Enterprises (Ministry of SOEs), Ministry of Finance (Kemenkeu), and Ministry of State Secretariat.
Furthermore, the two pp became the basis for the formation of a new SOE that functioned to become the home of MIND ID. Mainly, in carrying out MIND ID's function as a Strategic Holding Company in the Indonesian mining industry sector.
With these two pp, INALUM will remain part of MIND ID, such as PT Bukit Asam Tbk (PTBA), PT Aneka Tambang (ANTAM) Tbk, and PT Timah Tbk (TINS).
INALUM will focus on the operation of smelters or aluminum smelters, as well as the downstream development of the aluminum value chain.
Heri explained, INALUM itself will focus on operations and production, as well as development.
With this role, he said, it is expected to accelerate several strategic projects from INALUM which aim to increase the added value of the national aluminum commodity.
"INALUM after the reorganization will focus on managing the aluminum smelting plant and aluminum production integrated from upstream to downstream," said Heri.
With the support of MIND ID Group, he continued, INALUM will continue its growth strategy on the aluminum value chain
After the issuance of the two PP, Heri explained, the reorganization process will proceed to several stages.
The stage includes the General Meeting of Shareholders (GMS) of the Ministry of SOEs as a shareholder of INALUM, the transfer of assets and liabilities related to the HIP function to a new entity (MIND ID), as well as good and structured coordination with stakeholders.
The stakeholders in question, such as the Ministry of Finance, the Ministry of Law and Human Rights, the Ministry of Energy and Mineral Resources, and other Government Institutions.
During the reorganization process, said Heri, the implementation of the MIND ID function and also the operation of the aluminum smelter attached to INALUM will currently continue as before.
"The entire process will be subject to applicable laws and regulations including the Limited Liability Company Law (UU)," said Heri.
Until the new HIP entity (MIND ID) was formed, he continued, the HIP function would still be carried out by INALUM. The HIP function will switch from INALUM to MIND ID when the series of holding formation processes are completed.
Image source: Humas MIND ID
