Holding State-Owned Mining Industries Officially Formed

PT Bukit Asam Tbk held an Extraordinary General Meeting of Shareholders Wednesday, November 29, 2017 at Hotel Borobudur, Jakarta. Extraordinary General Meeting of Shareholders was held with three agendas, namely the approval of the change of the Company's Articles of Association related to the change of Persero's status to Non-Persero with respect to Government Regulation 47/2017 regarding Addition of State Capital of Republic of Indonesia to share capital of PT Inalum (Persero) stock split, and changes in the composition of the Board of Directors.

The result of the Extraordinary General Meeting of Shareholders approved the amendment of the Company's Articles of Association from Persero's status to Non-Persero, so that the company's name changed from PT Bukit Asam (Persero) Tbk to PT Bukit Asam Tbk. This status change is due to the joining of PT Bukit Asam Tbk into the Holding of SOEs Mining in accordance with PP 47/2017.

On the same day, PT Aneka Tambang Tbk and PT Timah Tbk also held an Extraordinary General Meeting of Shareholders with the agenda of changing the Articles of Association from Persero to Non-Persero. The result of the General Meeting of Shareholders of LB both agreed upon the amendment of the Articles of Association. Thus PT Bukit Asam Tbk, PT Aneka Tambang Tbk and PT Timah Tbk officially joined in Holding SOEs Mines with holding holding is PT Inalum (Persero).

In addition, at the Extraordinary General Meeting of Shareholders PT Bukit Asam Tbk, the shareholders also agreed to split the stock split with a ratio of 1: 5. The purpose of this stock split is to increase stock trading liquidity on the Stock Exchange by increasing the number of units outstanding shares and to expand the distribution of share ownership through stock price adjustment so as to achieve optimal trading range to reach various layers of investors.

Extraordinary General Meeting of Shareholders in PT Bukit Asam Tbk also confirmed the dismissal of Arie Prabowo Ariotedjo from his position as Director of Commerce PT Bukit Asam Tbk May 2nd, 2017. This stop is due to the appointment of Arie Prabowo Ariotedjo becomes President Director of PT Aneka Tambang Tbk. In addition, on the third agenda regarding the change of the Company's structure, Adib Ubaidillah's appointment as Commercial Director of PT Bukit Asam Tbk.

With the transfer of RI government shares to Inalum, the three companies officially become members of Holding SOEs Mining Industry, with Inalum as its holding (Holding).

In accordance with PP 72 of 2016, although changed its status, the three members of the holding is still treated the same with the state-owned enterprises for things that are strategic. The state has control over the three companies, either directly through the Series A Dwi Warna shares, or indirectly through PT Inalum (Persero).

Establishment of Holding SOEs Mining Industry aims to increase business capacity and funding, management of natural resources of mineral and coal, increase value added through downstream and increase local content, and cost efficiency of synergy.

In the short term, the new holding will soon conduct a series of corporate actions, including the construction of a smelter grade alumina plant in Mempawah, West Kalimantan, with a capacity of up to 2 million tons per year, the ferronickel plant in Buli, East Halmahera, with a capacity of 13,500 tons of nickel in ferronickel per year, and the construction of steam power plants at a downstream mill down to 1,000 MW.

In the medium term Holding Mines Industry will continue to acquire and explore mining areas, integration, and downstream. While in the long run, this holding will be included as one of the companies listed in 500 Fortune Global Company.