Ministry to form holding company for state mining firms

Jakarta (ANTARA News) - Indonesias State-owned Enterprises (BUMN) Ministry will establish a holding company for four state-owned mining firms, namely, PT Aneka Tambang, PT Bukit Asam, PT Timah and PT Indonesia Asahan Aluminium, this year.

"The holding company will be established to consolidate downstream mining business so that state-owned mining companies can be strong and can become global players," Minister of State-owned Enterprises, Rini Soemarno, said at her office here on Friday.

The minister said the holding company should be established before the end of 2016.

She said mining companies should develop synergy in order to become global players. They should no longer serve as just suppliers of raw material but must export finished goods to the world market.

She cited the example of PT Indonesia Asahan Aluminium (Inalum), which needed raw material in the form of grade alumina (GA), while PT Aneka Tambang (Antam) has bauxite as raw material for the production of aluminium.

"This is one of the things that could be done if companies have synergy , and it would lend a competitive edge to Antam and Inalum, making them stronger," she said.(*)