JAKARTA - The state-owned mining holding company MIND ID or PT Inalum (Persero) projects that its company will receive dividends of US $ 200 million from PT Freeport Indonesia (PTFI) in 2021.
President Director of MIND ID Orias Petrus Moedak in a hearing with Commission VII DPR RI in Jakarta, Monday 7 December said that it was agreed that in the last two years, PTFI would not distribute dividends as a consequence of a decrease in net profit due to the transition from open pit mining. to underground mining, which requires a large investment.
"According to the agreement, 2019-2020 profits decreased drastically due to the transition from open pit to underground, so it was agreed that there would be no dividends in the past two years. However, it is projected that the dividend that MIND ID will receive is 200 million US dollars in 2021 and 500 million US dollars in 2022, "he said, quoted from Antara, Tuesday, December 8.
Orias explained that because of the mining transition, PTFI only managed to book a net profit of US $ 166 million in 2019 and US $ 366 million in 2020. She projects that PTFI's net profit will increase in 2021 to US $ 870 million and will continue to increase in 2022 to 1 , 5 billion US dollars.
"After 2022, with a net income of 2 billion US dollars in 2023, we assume that the share of dividends received by MIND ID will be 1 billion US dollars every year. On this basis we come to investors and issue bonds because of Freeport's ability to pay in the future. sufficient, "he said.
MIND ID has issued bonds amounting to 4 billion US dollars in November 2018 to buy Freeport shares.
Of the bonds, $ 3.8 billion was used to pay for the divestment of Freeport shares and the remaining US $ 150 million was used for transactions and capital expenditure contributions to develop PTFI's underground mine in 2019-2020.
MIND ID global bonds consist of four maturities with different coupon rates, namely US $ 1 billion with a 5.23 percent coupon and maturing in 2021, then US $ 1.25 billion with a 5.71 percent coupon and matured in 2023, amounting to 1 billion US dollars with a coupon of 6.53 percent and maturing in 2028 and 750 million US dollars with a coupon of 6.75 percent and due in 2048.
According to Orias, bond issuance is more stable for long-term financing compared to syndicated foreign bank loans.
"With a (dividend projection) of 1 billion US dollars per year, by 2025 or 2026, 4 billion US dollars (of bonds) will have been covered," he said.
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