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Bisnis.comJAKARTA- PT Vale Indonesia Tbk. (INCO) pointed out that the company has fulfilled the obligation to record the assets in financial reports periodically submitted to the Indonesian Stock Exchange (IDX).

Nevertheless, the assets of INCO must be consolidated in the financial statements of Vale Canada Limited (VCL) as shareholder and principal controller of the company which holds mining concessions covering an area of ​​118,000 hectares spread over the provinces of south, central and southeast Sulawesi. .

“VCL consolidates the financial statements of INCO. That is, one of them is to recognize or record INCO’s assets in their consolidated financial statements,” said INCO’s communications manager, Bayu Aji, during the confirmation. Thursday (6/15/2023).

Bayu said the recording of INCO’s assets and valuation in VCL’s consolidated financial statements is in accordance with applicable accounting standards in Indonesia and abroad.

This was conveyed by Bayu following pressure from parliament and PT Mineral Industri Indonesia (Persero) or MIND ID who wanted to take back operational control rights and financial consolidation INCO from the current majority shareholder, VCL.

parliament with holding The public upstream mining company estimated that the listing of assets as well as the valuation of INCO’s nickel resources have so far been listed on a foreign stock exchange which is consolidated to VCL.

“As an IDX-listed public company, INCO submits financial reports through the IDX, both on a quarterly [unaudited] as well as annually [audited]“, Bayu said.

On the other hand, Commission VII DPR RI asked the government to strengthen the position of MIND ID in the efforts to negotiate a majority stake in INCO in the context of the extension of the mining concession of the integrated nickel company.

DPR Commission VII member Gerindra Fraction Ramson Siagian said MIND ID must secure operational control rights until INCO’s financial consolidation ensures the company’s potential nickel resources can become listed assets. in Indonesia.

“To have the resources and asset reserves of PT Vale Indonesia consolidated in the Indonesian state asset book, and not in Canada, because that is our resource,” Ramson said during a a working meeting with Minister of Energy and Mineral Resources (ESDM) Arifin Tasfrif, Jakarta, Tuesday (13/6/2023).

Nevertheless, Minister of Energy and Mineral Resources Arifin Tasrif has revealed that VCL wants to retain control of INCO after fulfilling the remaining divestment obligations for the change from employment contract (KK) status to that of special mining authorization (IUPK).

Arifin said INCO has opened up the possibility of offering a stock transfer share of more than 11% to MIND ID. However, society still wants to be the controller.

“Vale opens up opportunities for disposals of more than 11% of the shares, with rights of operational control and financial consolidation“, said Arifin.

The attitude of INCO’s board, Arifin said, was conveyed in a joint meeting with the government chaired by the deputy minister of public enterprises, which was also attended by senior officials from the ministry of finance. energy and mineral resources on May 4, 2023.

“MIND ID also wants operational control rights and financial consolidation, because if it only buys an additional 11% of the transfer shares without these rights, MIND ID will not benefit and risk incurring losses,” said Arifin.

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