The Indonesian government said the proposed business plan needed to be changed because it was the group which had made the company bigger.
Inalum is 60% controlled by Nippon Asahan Aluminum (NAA) — a consortium of seven Japanese multi national companies. It was opened in 1977 and based in Asahan, South Sumatra.
Under the existing deal, Inalum only retains 100kt/y, out of the 250kt/y of aluminium ingots it produces, to meet Indonesian domestic demand that may reach up to 300kt/y. The remaining production must be exported to Japan.
The renewal of the contract, due by 2013, has been proposed by the Japanese government through its Minister for Economy, Trade and Industry Masayuki Naoshima, who wants to continue the JV.
Inalum’s assets are estimated at $2bn. It made $132M profit in 2008, down from the $176M the previous year because of the global economic downturn.,
Source: The Jakarta Post, 12 Jan 2010