Cooperation with Japanese Consulting Company in 1972
The Indonesian government received a report from Nippon Koei, a Japanese consulting company on the feasibility study of the Asahan Hydropower and Aluminum Project. The report states that hydropower is feasible with an aluminum smelter as the main user of the electricity generated.
Signing of Master Agreement between the Government of Indonesia and 12 Japanese Companies in 1975
The Government of the Republic of Indonesia and 12 Japanese Investment Companies signed a Master Agreement for the Asahan Hydropower and Aluminum Smelting Plant, which became known as the Asahan Project, and formed a corporate entity under the name of Nippon Asahan Aluminum Co., Ltd (NAA) based in Tokyo which is obliged to operate the Asahan Project, in accordance with the master agreement. The share ratio between the Indonesian government and Nippon Asahan Aluminum Co., Ltd. at the time the company was established was 10% to 90%. In October 1978 the ratio became 25% to 75% and from June 1987 to 41.13% to 58.87% and from February 10, 1998 to 41.12% to 58.88%. The Indonesian Government then issued Presidential Decree No.5/1976 which established the Asahan Project Development Authority as the representative of the Indonesian Government.
PT Indonesia Asahan Aluminum Established in 1976
PT Indonesia Asahan Aluminum was established with the initial status as a Foreign Capital Company. As a PMA, INALUM's ownership is in two large entities, namely the Government of Indonesia and Nippon Asahan Co.Ltd
Inauguration of Inalum as part of BUMN in 2013
Contract termination by the Government of Indonesia against the Japanese Consortium took place on December 9, 2013, and de jure INALUM officially became an SOE on December 19, 2013 after the Government of Indonesia took over the shares owned by the consortium. PT INALUM (Persero) officially became the 41st SOE on April 21, 2014 in accordance with Government Regulation No. 26 of 2014.
Issuance of Government Regulation in 2017
The government issued Government Regulation No. 47 of 2017 dated November 10, 2017 concerning the Addition of State Equity Participation of the Republic of Indonesia into the Share Capital of the Company (Persero) PT Indonesia Asahan Aluminum. Then on November 27, 2017, the Government signed the transfer of Government shares in PT Freeport Indonesia to PT INALUM (Persero) which also marked that the Mining Industry Holding was officially formed. Since 2017, INALUM has carried out two tasks, namely as a Holding under the name Mining Industry Indonesia (MIND ID) and the operational function of smelting under the name INALUM.
Separation of Functions between MIND ID and Inalum in 2023
The Government of Indonesia through PP No.45/2022 concerning Reduction of State Capital Participation of the Republic of Indonesia in the Company PT Indonesia Asahan Aluminum and PP No.46/2022 concerning State Capital Participation of the Republic of Indonesia for the establishment of a Company in the Mining Sector separates the functions of MIND ID and INALUM which makes INALUM no longer a holding and changes its status to become a member of MIND ID (Mining Industry Indonesia), BUMN Holding Mining Industry.