PT Timah Loses Rp951 Billion in Cooperation with Private Smelter

Follow-up hearing of tin corruption cases at the Corruption Court/PHOTO: Rizky Adytia-VOI

JAKARTA - PT Timah Tbk is said to have suffered losses while collaborating with private smelters from 2018 to 2020. The value reached Rp951 billion.

The loss was conveyed by the Finance Director of PT Timah, Vina Eliani, when presented as a witness for the defendant Helena Lim in the trial of alleged corruption in the management of tin commodity trading in the mining business permit (IUP) area of PT Timah Tbk for the 2015 to 2022 period.

During the trial, Vina said that PT Timah Tbk lost Rp611 billion in 2019 and Rp340 billion in the 2020 period. Thus, the accumulated loss value is Rp951 billion.

"In 2015, 2016, 2017, you can explain the position of PT Timah's financial report like what?" asked the prosecutor during a trial at the Jakarta Corruption Court, Wednesday, September 4.

"I started in 2018, sir, the data is already available, in 2018 PT Timah Profits in Rp132 billion, 2019 lost Rp611 billion, 2020 lost Rp340 billion, 2021 profit Rp 1.3 trillion, 2022 at Rp1 trillion, and 2023 suffered a loss of Mr. Rp400 billion," said Vina.

He said the losses suffered were due to the decline in tin ore prices. Meanwhile, the volume of production and volume of inventory increased.

Not only losing money, PT Timah also has a debt for operational activities.

"Based on the data we have, indeed in 2019 and 2020 prices have decreased, on the other hand we also have a fairly high interest expense, sir, in those two years," said Vina.

"Okay, who was the loan?" asked the prosecutor.

"Yes, the loan, sir," replied Vina.

"To finance these activities, ma'am?" asked the prosecutor.

"To finance all operational activities, sir," replied Vina.

Vina said the cooperation with private smelters ended in December 2020. He said PT Timah immediately experienced a profit of IDR 1.3 trillion in 2021.

"After 2020, in 2021 did PT Timah record a profit or loss, ma'am? After the rental of this smelter agreement ended?" asked the prosecutor.

"In 2021 PT Timah will record a profit, sir," replied Vina.

"How much is the profit, ma'am?" asked the prosecutor.

"At IDR 1.3 trillion," replied Vina.

Private smelters in collaboration with PT Timah, namely PT Refined Bangka Tin and its affiliated company, CV Venus Inti Perkasa and its affiliated company, PT Sarijuna Binasentosa and its affiliated company. Then, PT Stanindo Inti Perkasa and its affiliated company, and PT Tinindo.

The case of a tin corruption case is known to cause state losses of Rp. 300 trillion. This value is based on the results of the audit conducted.