"Inalum belongs to Indonesia 100 percent now and is in a transition period to becoming a new state-owned company," he clarified, after a coordination meeting on Inalum.
Hatta added that earlier the new status was declared, and the company is now being put in order with regard to Asahan authority and other technical matters regarding the smelter.
"We will settle things related to sharing costs and land after the termination of the Asahan authority. We have ordered a team to settle pending problems with regard to the status so that it will be in accordance with the master plan of the ministry of industry," he explained.
After that the government will issue a government regulation to legitimize PT Inalum as a state-owned company, which is expected to be completed soon.
Industry Minister MS Hidayat added that after that the company is likely to increase its investment by US$700 million through an IPO and state capital participation after the status is confirmed.
He asserted that the companys status must immediately be determined so that it can perform better than it had when it was being managed by Japanese authorities.
"This is part of the governments efforts to determine the companys legal entity so that it can perform better although its management by Japan earlier was also good," he remarked.
He hoped that after the internal improvement exercise is carried out, including the legal aspect, production capacity of the company can be increased to 400 thousand tons from only 225 thousand tons now.
"We must prevent the companys performance from declining just after 30 years of being under foreign management. That must be prevented," he remarked.
Reporting by Satyagraha
Editor: Ella Syafputri
Copyright © ANTARA 2014
