Ateng Sutisna: MIND ID Must Create 9 Industrial Giants, Comparable to Major Private Mining Groups
Jakarta (02/10) — Ateng Sutlamina, a member of Commission XII of the Indonesian House of Representatives (DPR RI) from the PKS Faction, is urging MIND ID to establish nine large-scale mining and mineral industrial entities. He envisions these entities possessing competitiveness equal to the private business groups often referred to as the “9 Naga” and “9 Haji”.
He argued that the strength of state mining assets should be evident not only through the consolidated figures of the holding company but also through strong individual companies.
“If large groups possess mines that serve as the engines of their business strength, the state must possess equally powerful ones. We already have six members within MIND ID. There must be three new growth engines so that we have nine giants capable of competing,” he said.
Currently, MIND ID oversees six main entities: PT ANTAM Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Indonesia Asahan Aluminium (INALUM), PT Timah Tbk, and PT Vale Indonesia Tbk. He believes these six companies must continue to be strengthened in terms of technology, market access, productivity, and the ability to seize investment opportunities.
The existence of the groups known as the “9 Naga” and “9 Haji” demonstrates the importance of having entities that not only control resources but are also capable of controlling the value chain, building infrastructure, mastering technology, and expanding markets.
“We must not merely say that the state possesses large mineral reserves, while the companies managing them fail to develop into world-class industrial players,” he stated.
He emphasised that this comparison does not mean State-Owned Enterprises (SOEs) must mimic all the strategies of private companies. What needs to be built is the strength of national corporations capable of competing in terms of business scale, productivity, technology, and market mastery.
Consequently, he proposed three fields as new growth engines worthy of study: the battery and energy storage industry, the processing of critical minerals and advanced materials, and mining services, logistics, and infrastructure. All three are directed towards strengthening the mineral value chain while addressing the needs of future industries.
“The number nine does not mean we are adding as many companies as possible. Each entity must have a clear function, a strong market, technological readiness, measurable investment needs, and the ability to generate profit,” he asserted.
In the context of this competition, he also highlighted the plan to transfer approximately 30 per cent of PT Bayan Resources Tbk shares to PT Jhonlin Baratama. The conditional share purchase agreement was signed on 16 September, and the completion of the transaction remains subject to several conditions.
This transaction serves as a momentum to observe how MIND ID evaluates strategic investment opportunities in the mining sector. However, he cautioned the public not to rush to conclusions regarding whether an asset is cheap or expensive before knowing the price and all transaction terms.
“The public has the right to ask whether MIND ID has ever assessed the opportunity to enter Bayan, what its fair valuation is, and why that opportunity was taken or bypassed,” he said.
He requested that MIND ID maintain a clear capital allocation framework. Every major investment decision must be justifiable based on market prospects, return on investment, risks, and benefits to the state.
Therefore, the idea of the nine giants is an effort to build national industrial strength so that Indonesia does not merely remain a supplier of raw materials. The six existing companies must be strengthened, while three new growth engines are developed selectively based on business feasibility.
“The state must also have nine industrial giants that serve as national economic strengths. We must not find ourselves possessing the natural resources while the companies controlling the markets grow abroad. MIND ID must be capable of birthing companies of that calibre,” he concluded.