Inalum to be worth $1.2b in 2013, state treasury says

The government said Friday that the book value of state aluminum producer PT Inalum would be US$1.2 billion in 2013.

Arif Baharuddin, the director general for state assets, said the government would take over the company for a price based on the company's book value and would not extend the contract with Japan.

“We predict that the book value of company will be $1.2 billion in 2013. The exact figure still needs a due diligence,” he said.

Inalum was established under an agreement with the Japanese government in 1976. The agreement expires in 2013.

The Indonesian government has a 41.1 percent stake in the company and the Japanese consortium holds 58.9 percent.

The company produces 250,000 tons of aluminum per year, 60 percent of which is exported to Japan.