Indonesia to breach tin quota next year
Indonesia to breach tin quota next year
JAKARTA (JP): The state-owned tin mining company PT Tambang
Timah will continue increasing its production and exports next
year, in breach of Indonesia's tin export quota, an executive
said yesterday.
The company's president, Erry Riyana Hardjapamekas, told
reporters after a hearing with the House of Representatives that
the firm will increase its production from an estimate of 37,000
tons this year to 41,780 tons next year.
Tambang Timah exports 95 percent of its production and sells
the remainder on the domestic market, he said.
The Association of Tin Producing Countries (ATPC) has set
Indonesia's tin export quota at 30,500 tons this year and 18,000
tons in the first half of next year.
Indonesia's other tin company, PT Koba Tin, produces about
13,500 tons per annum.
Tambang Timah, which has 35 percent of its shares listed in
London, Jakarta and Surabaya (East Java), has repeatedly
suggested that the ATPC abolish its quota system.
"The quota system does not benefit us as a public company. I
think most ATPC members have broken their quotas," Erry said.
The ATPC groups Australia, Bolivia, Brazil, China, Indonesia,
Malaysia, Nigeria, Thailand and Zaire.
Erry said that most ATPC members have breached their quotas to
meet increasing world demand.
Erry suggested that the ATPC only deal with information
exchange and training activities for its members.
Asked about the decline of Tambang Timah share prices on the
capital market, he said that they were caused by market
sentiment, not company fundamentals.
The company's shares were offered at Rp 2,900 each ($1.28), or
$12.73 per Global Depository Receipt -- equivalent to 10 shares
-- in October. The shares were quoted at Rp 2,725 on the Jakarta
Stock Exchange on Monday.
Erry said his company would not intervene in the market to
prop up Tambang Timah's share price.
He added that his company, which booked a net profit of Rp 116
billion in the first 10 month of this year, expects to gain a
total profit of Rp 123 billion for the whole year.(04)