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Government reviews to erode Timahs dividend

JAKARTA: State-Owned Enterprises Ministry will review a request proposal of PT Timah Tbk, Indonesia-based leading tin miner, to decline the dividend amount for less than 50% by this year.Nevertheless, government hasnt decided yet for the dividend amount

JAKARTA: State-Owned Enterprises Ministry will review a request proposal of PT Timah Tbk, Indonesia-based leading tin miner, to decline the dividend amount for less than 50% by this year.Nevertheless, government hasnt decided yet for the dividend amount that should be distributed by the state-owned miner and keeps watching for the miners needs to develop its business this year.We are still considering declining the dividend or at least less than last years dividend. We also view the companys fund needs and business development program for this year to decide the amount of dividend, Minister of SOE Mustafa Abubakar, yesterday.In 2010, Timah had distributed 50% dividend of total 2009 net income. Then, by this year, Timah Financial Director Krishna Syarif expects for lower amount of dividend, however he didnt mention further.We expect for lower dividend compared to last years dividend considering on business development plan. But, I have no authority yet to mention the proposed amount of dividend. Just waiting for shareholders meeting later, he confirmed.In the meantime, by this year the tin miner plans to acquire PT Sarana Karya in order to enhance the quality of asphalts product. In addition, it will also optimize non-productive assets as hospital, and idle lands to be more productive. (t01/msw)

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