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Achieves BB+ credit rating upgrade, PT Vale Indonesia Tbk strengthens investor confidence
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S
&P Global Ratings has upgraded the credit rating of PT Vale Indonesia, one of the largest sustainable nickel mining companies in Indonesia, from BB to BB+ with a stable outlook.
The achievement marks a significant milestone for the company, enhancing its credibility in global financial markets, reflecting its prudent financial management and underscoring the strategic support from PT Mineral Industri Indonesia (MIND ID), Indonesia’s state-owned mining holding company.
The improved credit rating comes at a pivotal time as Vale Indonesia aligns its long-term strategy with Indonesia’s national agenda for industrial growth and sustainable resource management.
S&P Global Ratings highlighted MIND ID’s critical role in driving the transformation, with its 34 percent ownership providing enhanced oversight and capital support for Vale Indonesia’s strategic initiatives, including the expansion of greenfield nickel mining and its downstream processing capacity.
MIND ID’s increased stake in Vale Indonesia is aligned with the government’s aspirations to develop a strong national electric vehicle ecosystem and rapid growth of its mineral industry downstreaming, while Vale Indonesia could in turn benefit from the value chain synergy among the MIND ID group members.
Vale Indonesia chief financial officer Rizky Putra said the credit rating upgrade was a validation of Vale Indonesia’s disciplined financial management and its strategic importance to Indonesia’s mining ecosystem.
“The enhanced trust from investors and lenders will enable us to access larger funding pools at more competitive rates. This in turn empowers us to accelerate transformative projects that will drive long-term growth and deliver value to all stakeholders.”
The upgraded rating also recognizes Vale Indonesia’s financial prudence, as the company maintains a strong cash position, as well as a debt-to-EBITDA ratio that is expected to remain below threshold through 2026. Despite challenging nickel market conditions, Vale Indonesia has demonstrated resilience by deferring non-critical capital expenditures while focusing on strategic investments.
MIND ID chief financial officer Akhmad Fazri said the achievement underscored the strength of collaboration between Vale Indonesia and MIND ID, reaffirming its commitment to supporting strategic entities pivotal to Indonesia’s downstream mineral development.
“The upgraded credit rating not only strengthens Vale Indonesia’s market positioning but also enhances the credibility of Indonesia’s mining industry on the global stage. Together, we are creating pathways for greater economic impact, sustainability and innovation.”
