TEMPO.CO, Jakarta - In June this year, BHP Billiton Indonesia made a surprising business decision by selling 75 percent of the shares of its subsidiary IndoMet Coal (IMC) to Adaro Energy for US$120 million (Rp1.56 trillion). The acquisition gives Adaro, which already owns 25 percent stake in IMC, full control of the company.
The acquisition also marks BHP Billiton’s exit from Indonesia’s coal business, a field the company has been in since 1997. However, BHP Billiton Indonesia CEO Imelda Adhisaputra said their business decision should not be construed as a downscaling of the coal business. She contends that the coal sector will remain attractive if the government and business players are willing to adjust to conditions, adapt and improve.
Imelda holds an MSc degree in civil and environmental engineering from Tufts University in the United States and has worked in a number of mining and energy companies, such as Freeport, Newmont, Indika and others.
In August, she met with Tempo reporter Robby Irfany, and explained the acquisition process and shared her predictions on the outlook of the coal business:
Explain Adaro’s acquisition of IMC.
The process took about six months. Adaro was chosen as a partner because they already had a stake in IMC. For us, that was more convenient since we already knew each other and Adaro is familiar with BHP Billiton Indonesia’s business. The transaction was then handled by headquarters.
What did BHP Billiton Indonesia do to maintain its performance during the transition period?
The most important aspect was safety. Because there were data transfers during the transition period, we made sure that business operations would not stop when Adaro entered. I’m optimistic that Adaro can pick up the baton and keep up BHP’s good work.
Has the transaction been reported to the government?
We have to verify some data first. But we plan to (report it) as soon as possible.
Is BHP still interested in investing in Indonesia?
We are looking at all possibilities. But right now globally, BHP is holding back a little. We are reorganizing our business, conducting internal reforms first.
Some see BHP’s departure as setting a bad precedent for mining investment in Indonesia. Do you agree?
(The acquisition) was purely a business decision. Every organization has priorities when deciding where to invest. It has nothing to do with Indonesia. The company just thinks that perhaps it is better to let go of the business now and invest the money somewhere else.
How is BHP performing this year?
Pretty good. We have been producing since last year, with a target of one million tons. Sales began with the first shipment in September. Japan is still our main buyer. As for the local market, the portion is around 30-40 percent. We want it to be 100 percent, but perhaps the industry here is not ready yet. (*)
http://en.tempo.co/read/news/2016/09/29/241808348/Imelda-Adhisaputra-Coal-is-still-good-business