Sunday, 20 June 2021 | 21:55 WIB

Observer: State Mining Holding Company Has Potential to Create Three Crucial Issues

Office of Ministry of SOE.

JAKARTA, NETRALNEWS.COM - Pros and cons of the formation of holding company for state-owned enterprises (SOE) engaged in mining sector become increasingly prominent.

This is in line with the government's plan to conduct an Extraordinary General Shareholders Meeting which will remove the SOE status of PT Aneka Tambang (Persero) Tbk (ANTM.JK) or Antam, PT Timah (Persero) Tbk (TINS.JK) and PT Bukit Asam (Persero) Tbk (PTBA.JK) on November 29, 2017.

Legal observer of natural resources from Universitas Tarumanegara Ahmad Redi argues that the establishment of state mining holding company has the potential to create at least three crucial issues.

First, with the deletion of SOE status in the three state-owned enterprises, the efforts of government intervention and parliamentary oversight will be reduced. This provision is stipulated in Law No. 19 of 2003 on SOEs.

"Although the government claims that the state still has a role to play in supervision, it is clear that the effort will not be straightforward or will be stratified. It is because the share ownership of Antam, Timah and Bukit Asam will be under Inalum because their SOE status has been removed," said Redi in his written statement, Thursday (11/16/2017).

Second, continued Redi, another potential problem is the inclusion of a number of interests along with the status change of the three state-owned companies.

"This has the potential to become a new area and generate new mining mafia practices. Although currently the supervision of the three state-owned companies is strictly regulated, because it is supervised by the government, the House of Representatives and investors, as the three are also listed in the capital market," Redi added.

The third problem which also potentially arises due to the implementation of the concept of state-owned mining companies departed from the decline in people's control over the financial performance of the three SOEs. Departing from there, Redi urged the government to recalculate the profit and loss from the discourse of the formation of holding company for state-owned mining companies.

"Especially when the performance of Antam and Bukit Asam is excellence. Actually, the estuary of issue on state holding company is in Government Regulation No. 72/2016. This rule is clearly dangerous for state companies because the people can lose potential companies," he said.