"Indonesia has suffered losses for 22 years because of its cooperation with Japan..."
Jakarta (ANTARA News) - The Indonesian government is considering a takeover of tin producer PT Indonesia Asahan Aluminium (Inalum), after the current Japanese ownership contracts expire, Finance Minister Agus Martowardojo said on Friday.

"Indonesia has suffered losses for 22 years because of its cooperation with Japan (Nippon Asahan Aluminium), which should not be allowed to extend its contract," Martowardojo said, adding that Inalum must be returned to the Indonesian government once the contract expires.

Indonesia currently holds a 41 percent stake in Inalum, while the remaining majority stake is held by Japan`s Nippon Asahan Aluminium.

Martowardojo said the government was yet to take a decision regarding a takeover of Inalum and was considering other options, adding that his ministry could help the government in doing so and that a complete takeover would benefit the government.

He also refused to speculate whether Inalum will be sold to a state-owned firm once it is acquired by the government.

"The important thing is that Inalum should be taken over by the government. Whether it should be given to state-owned firms or to private companies is another matter," he said.

He added that a fund worth Rp7 trillion had been set up for buying Inalum shares, but the expenditure had not been included in the 2012 revised state budget yet.

However, Industry Minister MS Hidayat confirmed last week that the government had allocated a budget of around Rp7 trillion to fund its takeover of Inalum in 2013.

The government is currently in the midst of unofficial negotiations to reach a purchase agreement, discuss legalization and the fate of the company`s workers, Hidayat said, adding that an official negotiation would begin in August or September this year.

"As per the master agreement, if we decide to take over or buy the company`s shares, payment as well as negotiations must be concluded exactly a year before the deadline, which falls in October 2013," he noted.

Hidayat added that if the takeover was financed from the national budget, the government will have to first discuss the matter with the House of Representatives.

After it gains control of all Inalum shares, the government can nominate a state-owned company to manage Inalum, but so far no such decision has been taken, he said.(Uu.A014/INE/KR-BSR/B003)

Editor: Priyambodo RH
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