Holiday Ayo - The process of divesting PT Vale Indonesia's shares to the government is still ongoing. The divestment of this nickel mining company must be carried out again in order to continue to get an extension of the Special Mining Business License (IUPK) in Indonesia, which expires in 2025.

As cited from ekonomi.republika.co.id, Gadjah Mada University (UGM) economics and energy observer Fahmy Radhi assessed that the process of divestment of Vale Indonesia shares should provide benefits if the government is committed to using clean energy in carrying out operations to process its nickel ore.

"So (the Vale Indonesia divestment) is a good opportunity for Indonesia," he said, Saturday (29/7).

Fahmy also reminded that the implementation of good corporate governance must be an important factor that must be considered in completing the divestment of shares from a nickel company, where Vale Canada Limited currently owns the majority stake with a composition of 43.79 percent.

"In addition, this Vale Indonesia divestment will be able to increase good fiscal incentives," he said.

So far Mining Industry Indonesia (Mind ID) is still trying to get a majority of VI's shares. Mind ID is a representative of the Indonesian government, BUMN, which oversees the mining industry.

Based on Vale's shareholder information page, MIND ID currently only controls 20% of Vale's shares. Subsequent share ownership was followed by Sumitomo Metal Mining with 15.03%, Vale Japan Limited 0.54%, and the public with the remaining 20.64%. This divestment issue is a mandate of Law Number 3 of 2020 which has also been voiced by the Indonesian Parliament

With regard to post-divestment commitments, Fahmy hopes that MIND ID as a state-owned mining industry holding company should be able to carry out the commitments of the Joko Widodo government which is determined to carry out a clean energy transition in Indonesia. "This is something to pay attention to," he said.

So far, President Jokowi has appreciated the application of ESG that has been carried out by Vale Indonesia. This appreciation was given when inaugurating the Sawerigading Wallacea Biodiversity Park which is located at the nickel mine managed by PT Vale, in East Luwu Regency, South Sulawesi, last March.

"I will order this, I will immediately order all mining companies in Indonesia to copy/copy what has been done by PT Vale," said the President.