Indonesia's Govt to Take over Inalum

JAKARTA, KOMPAS.com - The Indonesian government will take over PT Indonesia Asahan Aluminium (Inalum) by way of the Government Investment Center (PIP) of the Finance Ministry when the contract with Japan expires in 2013.

"The government will take over Inalum, otherwise we will lose," Finance Minister Agus Martowardojo said here Wednesday.

He said Indonesia gained Inalum back, its assets will reach 1.2 billion US dollars with the potential of raising the state’s income. The government will hold a tender for a new Inalum management and maintaining the work contracts for the national interests.

The government was rather disappointed with the performance of the company which in the last three decades had been run by a Japanese consortium.

He said Inalum was supposed to give an added value for the domestic industry but its financial condition was far from expectations. Right now the Indonesian government controlled 41.13 pct of the shares of the aluminum producing company while the remaining 58.87 pct by the Japanese consortium.