Indonesia's Mining Industry Holding (MIND ID) Reports US$ 1.7 Billions Net Profit for FY2023

Through MIND ID, Indonesia's President Jokowi (yellow vest) focuses on downstreaming policies. (Photo: 

Indonesia's Mining Industry Holding, BUMN Holding Industri Pertambangan Indonesia or MIND ID, has reported positive performance growth throughout 2023.

During this year's Annual General Meeting of Shareholders, MIND ID recorded a net profit of IDR 27.5 trillion, or equal to US$ 1.7 billion (US$ 1 = Rp 16,200).

This net profit marks a 22.4% increase from the 2022 fiscal year and 36.3% higher than the 2023 Work Plan and Budget.

MIND ID's EBITDA also reached IDR 40.3 trillion (US$ 2.5 billion), growing 9.7% compared to the 2022 fiscal year.

MIND ID's President Director, Hendi Prio Santoso, stated that proactive business operational expansion and innovation based on circular economy principles have been able to provide added value and business revenue.

MIND ID's total assets also increased by 13% year-on-year (YoY) to IDR 259.2 trillion, accompanied by an 18% YoY increase in equity to IDR 129.6 trillion.

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Operational Success

Hendi Prio Santoso emphasized that MIND ID successfully maintained the production pace of several mining commodities to enhance the added value of Indonesia's mineral resources, including nickel, copper, tin, coal, gold, and silver.

"From an operational standpoint, MIND ID has managed to sustain the production rate of various mining commodities to increase the added value of Indonesia's mineral resources," he said, as quoted from Tempo (11/6/2024).

Commitment to Optimal Performance

Hendi noted that these positive achievements result from MIND ID's and its holding members' commitment to continuously maintain optimal company operational performance.

The company successfully realized various strategic plans in 2023, driving robust financial performance. "These achievements are a testament to our success, and we will continue to uphold them. MIND ID has been mandated by the government to manage Indonesia's mineral commodities to add significant value and ensure the company's optimal condition, particularly in supporting various government economic programs," he added.

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Additional Context

MIND ID, Indonesia's Mining Industry Holding, comprises PT ANTAM Tbk (IDX: ANTM), PT Bukit Asam Tbk (IDX: PTBA), PT Freeport Indonesia, PT INALUM, and PT Timah Tbk (IDX: TINS).

As of June 2024, MIND ID also owns 34% of Indonesia Vale (IDX: INCO).

MIND ID was established by the Indonesian government as the parent company for Aneka Tambang, Bukit Asam, Freeport Indonesia, Inalum, Timah, and Vale Indonesia.

The company began its journey in November 2017 when the government transferred the majority shares of Aneka Tambang, Bukit Asam, and Timah to Inalum as part of efforts to form a BUMN holding in the mining industry.

The formation of the holding was expected to create greater operational synergy among its members, reducing operational costs. Additionally, the holding was anticipated to promote downstream processing of products from its member companies.

In December 2022, Inalum was separated from MIND ID to focus on the aluminum business and prepare for an initial public offering (IPO). The government then reclaimed the majority shares of Aneka Tambang, Bukit Asam, Freeport Indonesia, and Timah held by Inalum and transferred them to MIND ID.