Timah to raise funds by selling assets<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
Ailing publicly listed tin-mining firm PT Timah announced on
\nThursday it would sell assets worth Rp 200 billion (US$20
\nmillion) in 2002 and 2003 to recover from its serious financial
\nproblems.<\/p>\n
Timah president Erry Riyana Hardjapamekas announced on
\nThursday the company hoped to obtain Rp 100 billion this year and
\nanother Rp 100 billion next year from its asset sales program.<\/p>\n
"We plan to sell our assets that have not been of much benefit
\nto us. We will first focus on selling fixed assets that are quite
\npromising rather than our shares in several companies," he told a
\nmedia briefing.<\/p>\n
He said Timah's property on Jl. Merdeka Timur 15, Jakarta,
\nestimated at Rp 70 billion, a golf course and a diesel oil-fired
\npower plant in Pangkal Pinang, Bangka Belitung province, would be
\namong its fixed assets to be sold. He did not specify the
\nlocation of the golf course.<\/p>\n
Its shares in tin-mining firm PT Koba Tin, gold-mining firm PT
\nKutaraja Tembaga Raya, insurance firm PT Asuransi Tugu Mandiri
\nand Singapore-based machinery spare parts manufacturer Plimsoll
\nwould also be sold to raise another Rp 50 billion, he added.<\/p>\n
According to Erry, the assets sales program is part of the
\ncompany's cost-cutting measures to cope with its financial
\ndifficulties.<\/p>\n
The assets sales program is part of the company's rescue
\nprogram that is awaiting approval from its extraordinary general
\nmeeting of shareholders next week.<\/p>\n
Timah has suffered financial woes since last year following
\nthe drop in tin prices on the international market.<\/p>\n
The company blamed widespread illegal mining in Bangka
\nBelitung province for oversupplying the tin market and
\ndragging the price of the commodity down.<\/p>\n
Over the past several years, illegal miners have produced
\n40,000 metric tons of tin ore per year, near equaling Timah's
\nproduction.<\/p>\n
The company has taken several cost-cutting measures, including
\nreducing working hours to prevent the company from going
\nbankrupt.<\/p>\n
It also called on the government to ban tin ore exports from
\nthe island to curb illegal mining. But the government only
\nresponded earlier this year by issuing a decree to ban tin ore
\nexports from both islands<\/p>\n
The decree will only allow the export of tin that is produced
\nby Timah and Koba Tin.<\/p>\n
Timah received an average price of $4,408 per metric ton of
\ntin last year, compared with $5,520 per metric ton in 2000.<\/p>\n
Last year, Timah's net audited profit stood at Rp 36.78
\nbillion, down from Rp 331.6 billion in 2000.<\/p>\n
Erry also said the company promised not to cut its workforce
\nthis year, backing down on its earlier plan to shed 70 percent of
\nit 5,200 workers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/timah-to-raise-funds-by-selling-assets-1447893297",
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