PT. Timah Borrowed Funds To MIND ID US$ 100 Million To Pay Debt

Illustration. (Irfan Meidianto/VOI)

JAKARTA - PT. Timah Tbk (TINS) is proposing a shareholder loan (SHL) or a fund loan of 100 million US dollars to the parent company, namely PT. Inalum (Persero) or MIND ID. The budget will be used to support its operations.

Finance Director of PT. Timah Tbk, Wibisono said that currently, the application for shareholder loan (SHL) to MIND ID is in process. Even though the loan application was made, TINS management tried to reduce the number of loans from third parties.

"The SHL reported in the mass media is currently in process. But the company has a commitment to plan to reduce the loan outstanding. In 2020, as we know, the company has reduced the outstanding loan amount," he said in a virtual press conference, Tuesday, April 6.

Wibisono said, in 2021 the company is committed to reducing the pressure on loan interest costs. Therefore, the SHL submitted to MIND ID is also used to reduce debt interest expenses from other parties.

"The company will continue to reduce the loan burden from the company's internal cash," he explained.

For information, it has debts that will mature in the next 12 months worth IDR 4.56 trillion. One of the strategies to pay off the debt, the company continues to explore shareholder loans worth 100 million US dollars to MIND ID.

Until the end of 2020, the company had total liabilities of IDR 9.57 trillion, down 36.62 percent compared to the end of 2019 of IDR 15.1 trillion. Thus, the total loans that will mature in the next 12 months consist of short-term bank loans worth IDR 3.8 trillion and supplier financing liabilities worth IDR 759.02 billion.