Explaining Indonesia's mining giant MIND ID, from the transformation of state-owned enterprises to mining industry leader

In the map of Indonesia's mining industry, MIND ID has long been not just a symbol of state-owned enterprises, but the "chief captain" in charge of nickel, copper, gold, tin and other core resources, dominating the layout and rhythm of the entire industry. The full name is PT Mineral Industri Indonesia (Persero) platform-type enterprises, in fact, how to rise? What kind of chips does it hold? A set of core data and key nodes are sufficient to outline its hardcore strength.

I. From a single aluminum company to a mining hub: the path of the "captain-in-chief"

MIND ID's predecessor was Inalum, an aluminum-focused state-owned enterprise with a relatively traditional business model focused on aluminum smelting and ancillary hydropower in North Sumatra.2018 became a key turning point in its rise - the Indonesian government pushed for the return of Freeport Indonesia's stake, and Inalum took Grasberg gold and copper mine in Papua from 9.36% to 51.23%, taking control of this world-class mineral resource for the first time. In 2023, PT Mineral Industri Indonesia (Persero) was officially listed under the brand name of "MIND ID". In 2023, PT Mineral Industri Indonesia (Persero) will be officially listed under the brand name of "MIND ID", and will establish its core positioning as a platform for the implementation of national mining strategies.

Second, the "chief captain" of the bottom: the whole mineral resource matrix

MIND ID's core power stems from the equity structure of "one platform to coordinate the whole industry chain". Through controlling or holding shares, it has incorporated all the leading mining companies in Indonesia: Antam controls key minerals such as nickel and gold, Bukit Asam dominates the coal field, Timah is a world-renowned tin company; it also holds a controlling stake in Freeport Indonesia, which is the world's top copper-gold mine in Grasberg. 2024, MIND ID will become the world's largest copper-gold mining company, and the world's largest copper-gold mine.ValeMIND ID is the largest shareholder of the company, and is deeply involved in its three major nickel downstream projects (total investment of $8.5 billion), which will boost nickel production capacity to 240,000 tons of MHP per year (the core raw material for electric vehicle batteries). From traditional minerals to key materials for new energy, MIND ID is the unrivaled leader in resource deployment, strategic planning and project promotion for Indonesia's core minerals.

III. Accounts Revealed: Profits and Contributions at the Tip of the Pyramid

According to the audited financial report of 2024, MIND ID's consolidated revenue amounted to USD 9.2 billion, up 34.% year-on-year; net profit amounted to USD 2.5 billion, up 46.% year-on-year; and consolidated assets amounted to USD 18.5 billion, a significant increase compared with that of 2023, placing it firmly in the first tier of Indonesia's state-owned enterprises. Profit distribution highlights the strategic value: 55% of net profit will be paid to the state treasury as dividend, and the remaining funds will be invested in downstream production expansion and industrial chain construction, realizing the dual objectives of "financial transfusion" and "industrial muscle growth". According to official data, the mining industry and downstream clusters centered on MIND ID contribute 26.9% to Indonesia's national economy, becoming an important pillar of the country's economy.

IV. New energy transformation: upgrading from "mine control" to "chain building"

If MIND ID's core task in the previous decade was "integrating resources", now its focus has shifted to "building industrial chain". Taking nickel resources as an example, in response to Indonesia's electric vehicle battery industry strategy, MIND ID has joined hands with Vale Indonesia to promote three major downstream projects, which not only locks in an annual production capacity of 240,000 tons of MHP, but also supports the construction of smelting, chemical industry, logistics, and infrastructure in the park, which will directly drive more than 8,000 people to be employed locally and activate the local economy. As the government's "policy enforcer", MIND ID has made the policy of "banning the export of raw minerals" into a real industrial chain, realizing the qualitative change from resource export to industrial value-added.

For Chinese companies, MIND ID is the key to deciphering the new order of Indonesia's mining industry. First, to enter the field of nickel, copper, battery materials, etc., MIND ID and its holding companies need to be included in the core of communication, rather than only docking government departments; second, MIND ID has both profitability goals and policy missions (employment, downstreaming), cooperation needs to take into account the dual dimensions of "commercial returns" and "national partnership"; third, MIND ID's market-oriented trend of promoting IPO will enhance financing capacity and governance transparency; third, MIND ID's market-oriented trend of promoting IPO will enhance financing capacity and governance transparency. "Third, MIND ID's market-oriented IPO trend will enhance its financing capacity and governance transparency, providing opportunities for long-term cooperation while raising the barriers to entry.

The essence of MIND ID is the "strategic dispatching center" of Indonesia's mining industry - determining the flow of resources, industrial chain structure and rules of access to cooperation. Under the background of the continuous release of Indonesia's resource dividend, reading and understanding the operation logic of MIND ID is the core key to the layout of Indonesia's local market.