JAKARTA (Yosefardi) – Japan’s consortium of Nippon Asahan Aluminium Co Ltd (NAA) decides to bring the payment of compensation for 58.8% shares transfer in PT Indonesia Asahan Aluminium (Inalum) to Arbitration tribunal.
Inalum is now controlled by the government of Indonesia as, based on the master agreement, the partnership with NAA in Inalum has ended on October 31, 2013.
NAA has approved to sell 58.8% stake in Inalum to government of Indonesia at price of US$558 million. Minister for Industry MS Hidayat said NAA has previously approved the share transfer scheme but now the scheme might change into assets transfer scheme.
Under assets transfer scheme, Indonesia will be also required to pay compensation for other assets, excluding shares, such as hydro power plant and aluminium smelter.
Minister added NAA also refused the audit on transanction of Inalum initiated by the government of Indonesia.
Inalum has equity of US$1.25 billion and cash of US$400 million. Inalum’s installed capacity will be raised to 450,000 tons per year, from current 250,000 tons, within next 2-3 years.
Inalum has option to launch the initial public offering (IPO) to raise fresh funds, including giving a portion of shares to local government.
Inalum needs working capital of US$150 million as a state company.