A Japanese consortium and the Indonesian government has formally terminated a contract to run an aluminum production company, which was effectively nationalized by Jakarta around two months ago.

The government is formally taking over the assets of PT Indonesia Asahan Aluminium, or Inalum, following months of tough negotiations.

"To come to today's event, we have marked history through good and bad times in our PT Indonesia Asahan Aluminum since its establishment," Industry Minister Mohamad Suleman Hidayat said Monday in a speech after the agreement was signed.