Divestment Negotiations at a Standstill
Negotiations between PT Vale Indonesia Tbk and state-owned mining holding MIND ID regarding the divestment of a 14% share stake have hit a deadlock over price valuation. Indonesia’s SOE Minister Erick Thohir remains adamant on the government’s valuation offer but has not disclosed specific details regarding the proposed share price.
Thohir’s Threat of Land Shrinkage
Erick Thohir has intimated that if an agreement on the price is not reached, Vale might face a relinquish or reduction of its mining land. This stance signifies the government’s determination to assert control and ensure fair valuation in the divestment process.
Vale’s Response and Strategic Implications
Vale’s reaction to the potential of land shrinkage remains unclear. Thohir expressed confidence in his position, suggesting that the government is prepared to take stringent measures if Vale persists with a premium share price.
Emphasis on National Bargaining Power
Minister Thohir emphasized the importance of Indonesia having bargaining power, especially in matters involving state assets. He highlighted the need for strategic handling of such negotiations, underlining the government’s commitment to protecting national interests in the mining sector.
Ongoing Discussions
Despite the current impasse, discussions continue as both parties seek to find a mutually acceptable resolution to the divestment issue. The outcome of these negotiations will be pivotal in shaping the future landscape of Indonesia’s mining industry and its state assets management. 
