The last question that will be asked in this series is why Inalum? Inalum, an aluminium smelter company and hydroelectricity manager, is the company that has been chosen to be state-owned holding for mining.
Why Inalum?
Inalum is also the youngest state-owned enterprise after the contract agreement with Japan ended. Inalum stands for: PT Indonesia Asahan Aluminium (Persero). The capacity of aluminium smelter is 225.000 tons with an aluminium quality of 99.70% and 99.90%.
Inalum as state-owned holding in mining is expected to progress towards mining smelter. So far, Indonesia has been known as a mining exporter, especially tins and coals. However, the addition value that Indonesia has earned is very small. This happened because Indonesia is not able to process the raw materials.
Possible challenges that may be faced are the following:
- Inalum is a manufacturer of mining products. Their performance is described differently from the mining industry. The requirements that have to be fulfilled are different with the three candidates for the subsidiary. This could be a problem, if not handled properly.
- Inalum was originally a joint venture company between Japan and Indonesia. Differences on work cultures could obviously make different challenges when as a state-owned holding they need to manage 3 other companies.
- Inalum still has permanent market, which is Japan. This reduces the capability to improve the competitiveness of the product. Do not let it reduces the competitiveness of the three state-owned enterprises that are under their management.
Fortunately, Inalum’s performance can be quiet good. This will simplify the progress to be accepted as state-owned holding for mining.
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