REPUBLIKA.CO.ID, JAKARTA -- The holding company for Indonesia's state-owned mining firms will become officially operational by the end of November, Fajar Harry Sampurno, the deputy for mining, strategic industry, and media of the State Enterprises Ministry, stated.

Sampurno noted here on Friday that the holding company will become officially operational after stakeholders give their approval on the transfer of the government's majority shares in three mining firms -- PT Bukit Asam Tbk (PTBA), PT Antam Tbk, and PT Timah Tbk -- to PT Inalum during an extraordinary shareholders' meeting on Nov 29.

The document on the transfer of shares will also need to be signed by the state enterprises minister.

"The document could be signed today or later on Monday, but it will need the approval of the shareholders. Hence, it will become officially operational on Nov 29," he noted.

The establishment of the holding company is aimed at improving the capacity of business and financing and management of mineral and coal resources as well as increasing the added value with improvement in downstream businesses and local content, and cost efficiency.

Currently, the government has majority shares in the three companies: 65 percent in Antam, 65.02 percent in PTBA, and 65 percent in PT Timah.

The government's majority shares in the three companies will be transferred to PT Inalum, which is fully owned by the government.

Despite the changed status, the three companies will be treated equally as the other state firms with regard to strategic issues. The government will also have control on the three firms directly and indirectly through PT Inalum in accordance with Government Regulation No. 72 of 2016.

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