PT Indonesia Asahan Aluminium, colloquially known as Inalum) is an Indonesian state-owned company specialized in
aluminium
Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. I ...
smelting. The company manages the huge potential of electricity generated from
Asahan River. Inalum was first established in 1976 as joint venture company between Indonesian government and , before it was fully acquired by the government in 2013.
Inalum has transformed itself into a strategic holding company, to be called Mining Industry Indonesia or MIND ID,
that oversees all state-owned mining companies.
History
The failure of the
Dutch East Indies government to take advantage of the swift flow of water from
Lake Toba
Lake Toba ( id, Danau Toba) ( Toba Batak: ᯖᯀᯬ ᯖᯬᯅ; romanized: ''Tao Toba'') is a large natural lake in North Sumatra, Indonesia, occupying the caldera of a supervolcano. The lake is located in the middle of the northern part of the i ...
through Asahan River prompted Indonesian government to build a hydropower plant. In 1972, the hydropower development plan strengthened after the government received a report from Nippon Koei, a Japanese consulting company, that the feasibility study of building hydropower plant was possible to be built as well as an aluminum smelter as the main user of the electricity it produced. Following the study, after lengthy negotiations and with economic assistance from the Japanese government for the project - later known as the ''Asahan Project'', the Indonesian government and 12 Japanese companies signed the master agreement on July 7, 1975 in
Tokyo
Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and List of cities in Japan, largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, ...
. Furthermore, in order to exercise capital investment in then-established company, the twelve companies together with the Japanese government formed Nippon Asahan Aluminium Co., Ltd. (NAA) on 25 November 1975.
Inalum was established in Jakarta on January 6, 1976 to build and operate the Asahan Project, in accordance with the master agreement. The shares comparison between the Indonesian government and Nippon Asahan Aluminium Co., Ltd. at the time was 10% and 90%, respectively. The shares later changed gradually: in October 1978 the shares became 25% and 75%, in June 1987 it became 41.13% with 58.87%, and since February 10, 1998 it became 41.12% with 58.88%.
To implement the provisions in the master agreement, the Indonesian government issued Presidential Decree No.5/1976 which underlies the formation of the Asahan Project Development Authority as a government representation responsible for the Asahan Project development. Inalum is noted as a pioneer and the first company in Indonesia who engaged in the aluminum smelting industry with total investment of 411 billion Yen.
The status change of Inalum into a state-owned company occurred ''de facto'' on 1 November 2013 in accordance with the master agreement. The Indonesian government and Nippon Asahan Aluminium Co., Ltd. terminate the contract on 9 December 2013, and ''de jure'' Inalum officially became a state-owned company on 19 December 2013 after the government took over shares owned by the consortium. PT Inalum (Persero) officially became the 141st state-owned company on 21 April 2014 in accordance with Government Regulation No. 26/2014.
Inalum is expected to become a holding holding of all state-owned mining companies. This is done so that the companies have greater integration of operations with diverse mine production while supporting the downstream mine industrialization. Members of the holding company including
Aneka Tambang, Bukit Asam, and Timah. In addition, the holding will start a strategic plan to integrate mining production activities and smelting of mining products, including a plan for acquired PT Freeport Indonesia.
In August 2019, the holding company renamed as ''MIND ID'', acronym of ''Mining Industry Indonesia''.
See also
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State-owned enterprises of Indonesia
*
Aneka Tambang
*
Grasberg mine
The Grasberg mine has one of the largest gold mining, reserves of gold and copper extraction, copper in the world. It is located in Mimika Regency, Central Papua, Indonesia near Puncak Jaya. It is operated by PT Freeport Indonesia (PTFI, ''s ...
References
External links
Official website
{{authority control
Government-owned companies of Indonesia
Indonesian companies established in 1976
Aluminium companies of Indonesia
Non-renewable resource companies established in 1976