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Mining holding firm MIND ID plans to spin off Inalum this year
The holding company wants to focus on long-term business planning, while aluminum producer Inalum focuses on operations.
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MIND ID president director Orias Petrus Moedak speaks during the company's three-year anniversary celebration in this undated picture. (Courtesy of MIND ID)
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tate-owned mining holding company MIND ID plans to spin off its aluminum operations into PT Indonesia Asahan Aluminium (Inalum) Operating, allowing the holding company to focus on long-term business planning and the subsidiary to go public.
Ogi Prastomiyono, director of strategic services at MIND ID, said the separation would make it easier for MIND ID to make new subsidiaries, dominate strategic commodity reserves, establish downstream industries and attract funding, among other long-term plans.
The holding company aimed to execute the spinoff by this year, so that Inalum Operating could conduct an initial public offering (IPO) by the end of 2022. MIND ID has yet to determine the amount of Inalum Operating stakes to be sold at the IPO.
“MIND ID could focus more on strategic planning, while operation would be only in its subsidiaries,” Ogi told lawmakers on Monday during a hearing in the House of Representatives.
Read also: State mining holding company rebrands as MIND ID
MIND ID said it would have "no liabilities or potential liabitlies, whether legal, tax or financial," after the spinoff, implying the liabilities would be passed on to Inalum Operating.
Ogi described focusing MIND ID on strategic planning as the "final form" of the government's mining holding company formation plan under Government Regulation No. 47/2017. At least two state-owned holding companies – one for cement, one for fertilizer – have adopted a similar approach.
