MIND ID - INALUM Reorganization Gets Approval of the Indonesian Government, MIND ID Focuses on Downstreaming of the National Mining Industry

Jakarta, 14 December 2022 - MIND ID, the Holding State-Owned Enterprise for the Mining Industry in Indonesia, is optimistic that the reorganization of MIND ID and INALUM will accelerate the downstreaming program in the national mining sector, enabling the commitment of the country to raise the added value of mining commodities to be realized. The optimism came after the Indonesian Government stipulated Government Regulation (PP)  No.45/2022 and No.46/2022 to approve the reorganization of the Holding State-Owned Enterprise for the Mining Industry in Indonesia.

MIND ID's Corporate Secretary, Heri Yusuf, said that the reorganization, which is supported by the Indonesian Government, will elevate the performance of MIND ID, INALUM, as well as other Holding Members. With improved performance, it is hoped that the vision of the Mining Industry Holding to provide benefits to all stakeholders can be easier to achieve.

"With the reorganization, MIND ID continues its role as a strategic Holding State-Owned Enterprise for the Mining Industry, raising the effectiveness of strategic activities focusing on efficiency and creating added value of products of the MIND ID Group members, as well as improve risk management, supervision of operational activites of MIND ID members and so on. It is hoped that MIND ID will be better and more sustainable in providing optimal contribution to all stakeholders," said Heri.

On 8 December 2022, the Indonesian Government issued PP 45/2022 dan PP 46/2022 which are irrevocable parts of the series of process in the formation of the Holding State-Owned Enterprise for the Mining Industry, up to now known as the brand identity of MIND ID (or Mining Industry Indonesia) and as legal entity becoming one with INALUM. The Government Regulation is the result of the collaboration of shareholders (Ministry of State-Owned Enterprises, Ministry of Finance and Ministry of State Secretariate). Henceforth, both PPs become the basis for the formation of a new State-Owned Enterprise which serves as a house for MIND ID in implementing its function as Strategic Holding Company in the mining industry sector In Indonesia. With both PPs, PT Indonesia Asahan Aluminium (Persero) (INALUM) will remain part of MIND ID, the same as ANTAM, Bukit Asam and TIMAH, and focuses on the operations of the aluminium smelter and also developing the downstreaming of the aluminium value chain.

As for INALUM, Heri explained that INALUM will focus on operations and production, as well as development, so that various strategic projects of INALUM aimed at raising the added value of the national aluminium commodity can be accelerated.

 

 

 

 

"INALUM will focus on the management of the aluminium smelter and integrated aluminium production from upstream to downstream. With the support of the MIND ID Group, INALUM will continue its growth strategy in the aluminium value chain," said Heri.

After the issuance of both Government Regulations, the reorganization process will continue, among others, including the General Meeting of Shareholders by the Ministry of State-Owned Enterprises as shareholder of INALUM, moving assets and liabilities related to the functions of the mining Iindustry holding to a new entity (MIND ID), as well as amicable and structured coordination with stakeholders such as the Ministry of Finance, Ministry of Law and Human Rights, Ministry of Energy and Mineral Resources, and other government institutions. During the reorganization process, the functions of the Holding State-Owned Enterprise for the Mining Industry (MIND ID) and also operations of the aluminium smelter, which is tied to INALUM, will run as usual.

"The entire process will duly observe the prevailing regulations and law, including the Limited Liability Company Law. Prior to the formation of the new mining industry holding entity (MIND ID), the functions of the mining industry holding will be implemented by INALUM. The functions of the mining industry holding will revert from INALUM to MIND ID at the time the holding formation process is finalized," Heri concluded.