Avoiding Rent Seekers
Monday, 18 July 2022
Vale Indonesia prepares to fulfill its obligation of transferring a majority of shares to the states while being overshadowed by the decline in production and performance.
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...
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