Positive Prospects For Electric Battery Make Antam Credit Rating Increase

JAKARTA - PT Aneka Tambang (Persero) Tbk (ANTM) stated that the increase in the company's credit rating reflects the increasing prospects for the business of developing nickel downstream for the electric vehicle battery industry (EV Battery) and the company's gold business.

For information, S&P Global raised the corporate credit rating for Antam from the previous B+ (positive outlook) to BB+ (stable outlook) in 2023.

Director of Finance and Risk Management of PT Aneka Tambang Tbk (Antam) Elisabeth RT Siahaan said the rating increase was in line with Antam's business sustainability strategy in optimizing the company's operations and finances.

"In carrying out operations, the company always carries out operational excellence, and focuses on careful cost management efforts through the implementation of appropriate efficiency programs," he said, quoting Antara.

He said the development of the company's EV Battery industrial chain was a National Strategic Project (PSN) which would strengthen Indonesia's position in the EV Battery industrial chain at the global level.

"In addition, Antam's credit profile growth increased in line with the company's adequate liquidity management and remained solid amid the challenges of global commodity prices," said Elisabeth.

In its report, S&P believes that the Indonesian government will continue to support Antam, along with the government's goal of managing and consolidating strategic mining assets through MIND ID, as an effort to manage interests in the domestic mining industry, especially in relation to natural resource (SDA) policies for national interests.

Elisabeth continued that the credit rating increase was supported by the implementation of the right operational strategy to support the company's profitability growth in the first semester of 2023.

"The company's financial liquidity position tends to be good, as reflected in the net cash flow position obtained from operating activities worth IDR 1.69 trillion in the first semester of 2023, or 96 percent year on year (yoy) growth compared to the same period in 2022 which was valued at IDR 861.32 billion," Elisabeth.

This achievement strengthens the company's financial structure, as reflected in the position of cash balance and cash equivalents in the first semester of 2023 which was valued at IDR 6.58 trillion, or a significant growth of 104 percent (yoy) compared to the same period in 2022 which was valued at IDR 3.23 trillion.