THE mandatory transfer of shares of foreign mining companies to the Indonesian government always leaves behind the bad aftertaste of the dominant role of rent-seekers. The plan to divest 11 percent of Vale Indonesia’s shares, which must be completed by 2025, is no exception.

In accordance with Law No. 3/2020 in mineral and coal mining, mining companies are required to relinquish 51 percent of their ownership. Vale had previously divested 40