Riffrag Business & Finance Report

The Indonesian government will form a negotiating team of PT Indonesia Asahan Aluminium (inalum) after the assessment is completed a business proposal. In fact, the proposal deadlines October 31, 2010.

Minister for State Owned Enterprises (SOEs) Mustafa Abubakar said it was completing a business proposal from Indonesia, which will decide what kind of a continuation of the cooperation contract that has been 30 years running and will end in 2013.

“It’s still in the stage of completion proposals. So we Completes proposals from each side and the Indonesian government must state on going a while, but I have not been able to determine when, will be coordinated with the Coordinating Minister for the Economy, “Mustafa said in Jakarta on Monday (6/21/2010).

Having completed a business proposal, he added, will form a new government negotiating team. “But clearly it will be finished before the deadline. Later when it’s finished, perhaps the Coordinating Minister of Economy will form negotiating teams, it’s only the technical team, “he explained.

Negotiating team later on, he said, would consist of cross-ministry. “Any of the Coordinating Minister for Economic Affairs, Minister of Industry, Minister of State,” he said.

Minister of Industry (Industry Minister) MS Hidayat had previously said it suggested there was the appointment of an independent consultant to make the assessment in terms of socio-political, technical, and financial.

“From the study it, then we will go forward to the talks, after the team decided perundingnya officially through the Presidential or Presidential Directive,” said Hidayat.

Hidayat explained, such as the composition of shareholders for any inalum management management, he said, must remain professional. “Everything can be discussed after the formal decision of the President,” he said.

In addition, proposals for cooperation from the Japanese extension must also be handled professionally. “If you want to negotiate, Japan provides a business proposal, later Indonesia, which counters the call,” he said.

Hidayat explained, if Indonesia chooses to take over inalum, then management must be able to make a good program to promote the company. Thus, he said, not to Indonesia did not prepare thoroughly planning. “If I can this year, October has been no concrete results,” he said.

Hidayat expressed, it is important to create and grow the industry and downstream processing of bauxite. “Because we’re increasing aluminum production for domestic needs. If so, then we export,” he said.

Similar disclosed by chairman of the Indonesian Employers Association (Apindo) Sofjan Wanandi. “We must not continue to export bauxite,” said Sofyan.

Sofjan said Indonesia should be able to take over and control a larger share of the Japanese inalum. “Indonesia should be able to take a majority position,” said Sofyan.

Sofjan added that the technology is not a major problem that must be feared. “We can buy technology and then pay the expert. Can not,” he said.

As is known, is a joint venture inalum shaped foreign investment (FDI) among the Japanese as a majority shareholder and the Indonesian government.

Currently, inalum produce 250,000 tons of aluminum ingots per year, from an installed capacity of 225 thousand tons. Production beyond the installed capacity is thanks to technological improvements made in 2008. As many as 40 percent of aluminum production is for domestic inalum, then the rest is exported to Japan.

Indonesia to import 150 thousand-200 thousand tons of aluminum per year, among which are from India, China, Japan, and Australia.

Inalum mentioned in the Master Agreement, shavings II Hydroelectric automatically become the property of Indonesia on November 1, 2013, by paying compensation at book value. Inalum has proposed the extension of cooperation. The proposal is still under review by the technical team of Ministry of Industry (Kemenperin)