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Jakarta (ANTARA News) - The government intends to nationalize PT Indonesia Asahan Aluminium (Inalum) and become the company`s sole shareholder when the company`s contract ends in 2013, State Enterprises Minister Mustafa Abubakar said.

"If I am a shareholder I wish 100 percent of the shares belong to Indonesia," the minister said after attending an Idul Fitri gathering with President Susilo Bambang Yudhoyono at the palace here on Friday.

Mustafa believed Indonesia is able to manage Inalum technically or financially. He said the intention to nationalize Inalum is not a bluff but is a serious one after thorough consideration.

He said the government right now is still discussing the intention with the parties concerned.

Mustafa said the government had already prepared a number of state-owned companies that would play a role in the takeover bid. He mentioned PT Aneka Tambang as a state company responsible in the technical aspects of Inalum management. With regard to funding he said the government plans to cooperate with PT Danareksa, PT Perusahaan Pengelola Aset and PT Bahana Sekuritas.

He said the state enterprises ministry would discuss again the plan with the ministry of industry. After that the officials of the two ministries would report it to the coordinating minister for economic affairs in a coordination meeting forum.

"Later a negotiation team will be established," he said.

Mustafa said he did not know yet what the Japanese companies that have so far operated Inalum wished. It will all be made clear in the negotiation forum later, he said.

Earlier some member of the House of Representatives expressed the wish that Indonesia could fully own the company, after the cooperation contract ends in 2013. They said the takeover would give a full benefit to Indonesia.

The government`s technical team for PT Inalum estimates Indonesia will get a profit of US$120 million from Inalum a year if it takes over the company fully in addition to fulfillment of domestic needs.

It however also warned of the negative impact of the takeover referring to among others cash need of US$120 million for the bid, outflow of Indonesia funds to Japan worth US$723 million and the loss of potential new investment worth US$367 million that has been offered by Japan for purification expansion and new 150MW power plant development worth US$300-500 million.

Japan has proposed for the continuation of the cooperation for 30 years more with expansion plans such as in aluminium production from 250,000 tons to 317,000 tons a year and with an additional investment of US$367 million and an offer of a power plant development project.
(T.F008/Uu.H-YH/HAJM/F001/P003)

Editor: Priyambodo RH
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