Transformation of SOE Ministry Annual Report 2020 slide image

Transformation of SOE Ministry Annual Report 2020

CHAPTER 1 234 5 6 7 SOE ROADMAP & TRANSFORMATION MINISTRY OF STATE-OWNED ENTERPRISES ANNUAL REPORT 2020 The mineral and coal down-streaming initiatives, especially nickel, have received positive response from foreign investors. Contemporary Amperex Technology Co. Ltd. (CATL) from China and LG Chem Ltd from Korea, two of the world's largest electric vehicle (EV) battery manufacturers, signaled their interest in joining an investment project worth more than USD20 billion to develop nickel supply chains in Indonesia. The development of the EV Battery ecosystem by SOES will create added value of USD2.5 billion to the economy, attract investment of USD4-7 billion, potential foreign exchange earnings of USD1-3 billion per year, taxes of around USD1 billion per year, and employment for up to 16,000 people. OIL AND PETROCHEMICAL REFINERY DEVELOPMENT The oil and petrochemical refinery development is a National Strategic Project as stipulated in the Presidential Regulation of the Republic of Indonesia No. 109/2020. The goal is to realize national energy sovereignty by building an integrated oil refinery with petrochemicals to support regional and national economic growth through the multiplier effect of project implementation. BATANG INTEGRATED INDUSTRIAL ESTATE C Signing of Share Purchase Agreement and Offlake Frawark Agreen Lot PT Vale onesia Tbk The Signing of Share Purcase Agreement for the Acquisition of Shares Divestment of PTVI between the President Director of MIND ID and President Director of PTVI witnessed by the Minister of SOED and Minister of ESDM The Batang Integrated Industrial Estate (KITB) is located in Pekalongan City, Batang District, and Pekalongan District. KITB is expected to support and provide added value to economic development in the three main corridors of development in Central Java (Kedungsepur, Purwomanggung, and Bergasmalang Region). PT Wijayakusuma Industrial Estate (Persero), PT Perkebunan Nusantara IX and PT Pembangunan Perumahan (Persero) Tbk, has signed a Memorandum of Understanding on KITB Development on 30 June 2020. Subsequently, they will form a new business entity or establish a subsidiary and/ or joint venture to work as the developer and manager of KITB, in collaboration with the Batang District Government through a regional government-owned enterprise engaged in various businesses (Perusahaan Daerah Aneka Usaha). PT KITB was formed on 11 December 2020. Currently, the basic infrastructure development process is being carried out with the State Budget from the relevant Ministries. DIVESTMENT SHARE ACQUISITION OF PT VALE INDONESIA TBK Mining Industry Indonesia (MIND ID) with the majority shareholders of PT Vale Indonesia Tbk (PTVI), namely Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), had completed the transaction to purchase 20% of PTVI's divested shares on 7 October 2020. VCL has sold 14.9% of its shares and SMM of 5.1% for Rp2,780/share or Rp5.52 trillion. With the completion of the transaction, the share ownership in PTVI changed to 44.3% VCL, 20% MIND ID, 15% SMM, and 20.7% public. The completion of this transaction marked the start of a long-term strategic cooperation between MIND ID and PTVI. The government appointed PT Indonesia Asahan Aluminum (Persero), better known as MIND ID, as the Government's representative in the implementation of this share divestment. The divestment of 20% of PTVI's shares is a commitment based on the 2014 Contract of Work amendment between PTVI and the Government of the Republic of Indonesia. INVESTMENT IN GOJEK On 16 November 2020, Telkomsel invested USD150 million in Gojek and later put an additional investment of USD300 million on 21 May 2021. The investment is part of Telkomsel's strategy to provide beyond connectivity services. Telkom believes that collaboration and synergy with one of the largest digital companies in Indonesia can accelerate Telkom's transformation into a digital telco company, providing the best services and solutions to the community in building an inclusive and sustainable digital ecosystem. This is also in line with the role of the Telkom Group to open more opportunities for the public to gain access to online platforms that are closer, customer centric, and have a positive impact on people's lives and accelerate Indonesia's economic growth. Tekom Indonesia gojek TELKOMSEL ACQUISITION OF INDOMETAL CORPORATION (ASIA PACIFIC) PTE. LTD (INDOMETAL SINGAPORE) MIND ID and Indometal (London) Limited signed a Sale & Purchase Agreement on 29 June 2020. This transaction marked MIND ID's 100% acquisition of Indometal Singapore's shares. MIND ID for a total amount of US$398,500. 48 49 RESILIENCE AMIDST UNCERTAINTY RESILIENCE AMIDST UNCERTAINTY 49
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