Nama : Roslini Pardosi ( 22120857 ) Hawa Nurhasanah ( 22120833 )

Inalum handover delayedin absence of commissionapprovalThe Jakarta Post, Jakarta | Business | Sat, October 26 2013, 11:41 AMBusiness News No subsidized-fuel quota increase in 2014 Meditate for more profitable decisions Maybe kindness really is its own rewardThe government has delayed signing the termination of a cooperation agreement with Japan on PT Indonesia Asahan Aluminium (Inalum) that was earlier scheduled for Friday.

Finance Minister Chatib Basri said on Friday that the government had failed to secure an approval from a meeting at the House of Representatives Commission XI overseeing finance the day before.

The meeting at the commission failed to reach quorum.

Chatib said the government expected to make it the next meeting, which is scheduled for next Wednesday.

We have obtained approval from Commission VI and Commission VII. However, we are still waiting for [approval from] Commission XI, he said, referring to the former two as commissions overseeing state-owned enterprises and energy.

We will pursue Pak Hidayat [Industry Minister MS Hidayat] and his team to finish this before the deadline on Nov. 1.

Commission XI was supposed to hold a meeting on Thursday with representatives from the finance industry, State-Owned Enterprises Ministry, the state auditor Development and Finance Controller (BPKP) and the Finance Ministrys directorate general for taxation to discuss the takeover of Inalum.

Inalum, established in 1976, is 41.12 percent owned by the government and 58.88 percent owned by NAA, a consortium of 12 Japanese companies, including Sumitomo Chemical Co. Ltd., Sumitomo Shoji Kaisha Ltd., Mitsui Aluminium Co. Ltd. and Mitsubishi Corporation.

The government has decided to stop partnering with the Japanese firms, with the cooperation agreement scheduled to expire by the end of this month.

It plans to transform Inalum into a new state-owned company.

The government has proposed a plan to take over the company in a US$558 million bid. The amount is higher than the BPKPs previous valuation of $424 million and lower than the Japanese shareholders own version of $626 million.

Speaking at a different event, Hidayat said that the difference resulted from asset revaluation.

The $558 million is not a new number. The previous number was $424 million because we previously did not take into account asset valuation, Hidayat said.

The Finance Ministry or the BPKP will explain [to the commission] the payment plan amounting to $558 million, he added.

Commission XI deputy chairman Harry Azhar Azis expressed his concern over the value difference between the governments proposal and the BPKPs valuation.

This is my stance; why does the government take higher valuation and not use the value from the BPKP? Every figure needs to be accountable, he said.

Inalum started operations in 1983 in Asahan, North Sumatra, and currently operates the only aluminum smelter in Southeast Asia.

Following the acquisition, the government aims to double the smelters capacity to 500,000 tons of aluminum ingots each year.

The government will also sell the larger part of the aluminum to the domestic market.

According to its website, Inalums production capacity stands at 225,000 tons of primary ingots per year. The company delivers around 40 percent of its product to the domestic market and exports the remainder to Japan.

A shift in Inalums output allocation would lead to a larger ingot supply available locally, which would help the idea make its way into the governments planned cluster for aluminum-based products.

Downstream products suitable for development there include aluminum alloys, sheets, foil and finished products, such as household tools, automotive components and cables.

The company also has hydropower plants Asahan I and Asahan II as its prime energy sources. The electricity produced is 426 megawatts, according to the companys website.

The electricity is distributed mostly for the aluminum industry in Kuala Tanjung. (tam)

Inalum handover delayedin absence of commissionapprovalThe Jakarta Post, Jakarta | Business | Sat, October 26 2013, 11:41 AMBusiness News No subsidized-fuel quota increase in 2014 Meditate for more profitable decisions Maybe kindness really is its own rewardThe government has delayed signing the termination of a cooperation agreement with Japan on PT Indonesia Asahan Aluminium (Inalum) that was earlier scheduled for Friday.

Finance Minister Chatib Basri said on Friday that the government had failed to secure an approval from a meeting at the House of Representatives Commission XI overseeing finance the day before.

The meeting at the commission failed to reach quorum.

Chatib said the government expected to make it the next meeting, which is scheduled for next Wednesday.

We have obtained approval from Commission VI and Commission VII. However, we are still waiting for [approval from] Commission XI, he said, referring to the former two as commissions overseeing state-owned enterprises and energy.

We will pursue Pak Hidayat [Industry Minister MS Hidayat] and his team to finish this before the deadline on Nov. 1.

Commission XI was supposed to hold a meeting on Thursday with representatives from the finance industry, State-Owned Enterprises Ministry, the state auditor Development and Finance Controller (BPKP) and the Finance Ministrys directorate general for taxation to discuss the takeover of Inalum.

Inalum, established in 1976, is 41.12 percent owned by the government and 58.88 percent owned by NAA, a consortium of 12 Japanese companies, including Sumitomo Chemical Co. Ltd., Sumitomo Shoji Kaisha Ltd., Mitsui Aluminium Co. Ltd. and Mitsubishi Corporation.

The government has decided to stop partnering with the Japanese firms, with the cooperation agreement scheduled to expire by the end of this month.

It plans to transform Inalum into a new state-owned company.

The government has proposed a plan to take over the company in a US$558 million bid. The amount is higher than the BPKPs previous valuation of $424 million and lower than the Japanese shareholders own version of $626 million.

Speaking at a different event, Hidayat said that the difference resulted from asset revaluation.

The $558 million is not a new number. The previous number was $424 million because we previously did not take into account asset valuation, Hidayat said.

The Finance Ministry or the BPKP will explain [to the commission] the payment plan amounting to $558 million, he added.

Commission XI deputy chairman Harry Azhar Azis expressed his concern over the value difference between the governments proposal and the BPKPs valuation.

This is my stance; why does the government take higher valuation and not use the value from the BPKP? Every figure needs to be accountable, he said.

Inalum started operations in 1983 in Asahan, North Sumatra, and currently operates the only aluminum smelter in Southeast Asia.

Following the acquisition, the government aims to double the smelters capacity to 500,000 tons of aluminum ingots each year.

The government will also sell the larger part of the aluminum to the domestic market.

According to its website, Inalums production capacity stands at 225,000 tons of primary ingots per year. The company delivers around 40 percent of its product to the domestic market and exports the remainder to Japan.

A shift in Inalums output allocation would lead to a larger ingot supply available locally, which would help the idea make its way into the governments planned cluster for aluminum-based products.

Downstream products suitable for development there include aluminum alloys, sheets, foil and finished products, such as household tools, automotive components and cables.

The company also has hydropower plants Asahan I and Asahan II as its prime energy sources. The electricity produced is 426 megawatts, according to the companys website.

The electricity is distributed mostly for the aluminum industry in Kuala Tanjung. (tam)