INDEPENDENT APPRAISER PREFERABLE TO ASSESS INALUM ASSETS : OFFICIAL

Jakarta, June 11 (ANTARA) - The assessment of PT Indonesia Asahan Aluminium's assets had better be carried out by an independent appraiser to ensure objective results, a senior official said.

"Inalum is a large-scale project so that the value of its assets had better be assessed by an independent appraiser," Director General of State Assets at the Finance Ministry Hadiyanto said here on Friday.

He was referring to the government's plan to acquire PT Inalum, a joint venture between Indonesia and Japan in the production of aluminum in Asahan, North Sumatra.

"Japan has tabled a business proposal to have its cooperation contract extended while Indonesia has also submitted a counter-proposal because we want to take it over. For this purpose, the negotiating teams of the two sides will discuss it further," Industry Minister MS Hidayat said.

"We will set up a negotiating team. This team will be assisted by a technical team which already exists," the minister said.

The government will also assign an independent consultant team to assess the take-over plan from various aspects until a second opinion is in hand.

The Japanese side had stated October 31, 2010 was the deadline for both sides to decide on the status of the project.

In the meantime, State Enterprise Minister Mustafa Abubakar said that the government was able to take over Inalum.

"We are able to take it over, whatever the price. We have already made the relevant calculations," the minister said after attending a coordination meeting on PT Inalum on Thursday.

He said a state-owned company would be assigned to acquire the Japanese stake in Inalum but he could not yet name the state enterprise.
So far, state-owned mining firm PT Antam had been active in technical discussions on the Inalum take-over plan. ***2***