Enterprises Minister Mustafa Abubakar said about $800M was required for the takeover, which will come from Antam’s reserves, reports the Jakarta Post.

Mustafa said the government wanted 100% control of Inalum, ending a contract signed in 1976 with Nippon Asahan Aluminum Co (NAA), a consortium of 12 Japanese firms, under which Indonesia owned a 41% stake, with the remainder owned by NAA.

Inalum, located in North Sumatra, produced 254kt of aluminum ingots last year, up 3.4% from 245, 526t in 2008.

About 60% of Inalum’s output is exported to Japan, with the rest sold to the domestic packaging and transportation industries.