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Jakarta Post

Lawmakers reject state mine holding establishment

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, November 22, 2017   /   07:13 pm
Lawmakers reject state mine holding establishment Mining trucks drive along the tracks of a coal mine in East Kalimantan. (Antara/Wahyu Putro A)

The House of Representatives has rejected the government’s plan to establish a state-owned mine holding company involving several mining firms such as aluminum producer PT Inalum, diversified mining company PT Aneka Tambang (Antam), tin mining company PT Timah and coal mining  company PT Bukit Asam.

“We see the establishment of a holding company as against the law,” said Martri Agoeng, a member of House Commission VI overseeing mining affairs, in Jakarta on Wednesday.

He said the House had rejected Government Regulation (PP) No 72/2017, a revision of PP No. 44/1915 on the procedure of the management and injection of state funds into state-owned enterprises (SOEs), which was a reference for the establishment of a holding company.

He said the revised regulation had tried to eliminate the House’s role of monitoring the SOEs.

“After the establishment of a holding company, the current firms will become subsidiaries. Therefore, the House will not have the authority to monitor the firms,” said Martri of the Prosperous Justice Party (PKS).

Antam, Timah and Bukit Asam held on Oct. 29 extraordinary shareholders meetings, which were believed to be an initial step toward the formation of the holding company.

Another Commission VI member, Inas Nasrullah, criticized SOEs Ministry, which did not involve lawmakers when Antam, Timah and Bukit Asam handed over their respective Series B shares to Inalum, which was another step toward establishing a holding company.

Inas said the commission would summons SOEs Minister Rini Soemarno to explain the issue. (bbn)