Timah targets 15% profit growth under new leadership

Posted on April 25, 2012


The Jakarta Post | Fri, 04/20/2012 9:46 AM

The newly-appointed president director of state-owned tin producer PT Timah Tbk, Sukrisno, has set a target of up to a 15 percent increase in net profits this year on bigger production volume.

Hitting such a target is expected to drive Timah to book up to Rp 1 trillion (US$109 million) in net profits by year end, as the company reported Rp 896.78 billion in net profits last year.

“Our growth will be supported by growing production volume to between 40,000 and 45,000 metric tons of refined tin this year,” Sukrisno, who previously served as president director of PT Tambang Batu Bara Bukit Asam. Last year the company produced 38,132 metric tons.

Increasing tin prices, according to Sukrisno, would also contribute to the company’s bottom line. The company weathered volatile market prices for tin last year, which swung from $18.610 to $33,255 per metric ton as a consequence of financial crisis in Europe and the United States. The price volatility led to lower shipments as Indonesian producers, including Timah, halted exports in an attempt to stabilize tin prices.

Timah is allocating up to Rp 1.4 trillion in capital expenditures this year, partly to finance the procurement of bucket wheel dredgers and upgrades for its existing processing and smelting facilities.

Moreover, Timah also wants to acquire an additional five cutter-suction dredgers.

Timah recently obtained standby loans amounting Rp 3 trillion from local and foreign banks. “The funds will be used to improve our business, such as capital expenditures, and productive investment,” Timah director Abrun Abubakar said.

The company is also planning to use the loans to finance the acquisition of a coal mining concession.

Abrun said that Timah expected to acquire at least one coal mining concession this year.

“There are four concessions we are looking at. We hope to acquire one of them,” he said.

Currently, Timah has a coal mining area in South Kalimantan, which has a production capacity of 600,000 metric tons per year.

Sukrisno, who was appointed as president director in a shareholders meeting on Thursday to replace Wachid Usman, said that coal mining was part of his company’s business expansion.

“We are still a minority in the coal mining business, at about 8 to 9 percent of ownership. We haven’t decided to go into the coal mining business or other sectors. It is just a business calculation, as coal mining is booming,” Sukrisno said.

In a shareholders’ meeting on Thursday, Timah announced that it would disburse Rp 448.39 billion in dividends, or 50 percent of its Rp 896.78 billion in net profits from 2011. The dividend pay-out ratio is equal to Rp 89.09 per share.

“The dividends will be paid at the end of May,” Abrun said.

Shares in Timah closed at Rp 1,820 a piece on Thursday, increasing by 4 percent from Rp 1,750 a piece a day earlier. (yps)

Previous board of directors                                 New board of directors

Wachid Usman (president director)                          Sukrisno (president director)

Setyo Sardjono (director)                                         Dadang Mulyadi

Surawardi (director)                                                 Purwijayanto

Krishna Syarif (director)                                           Ahmad Rosidi

Gatut Hari Prasetyo (director)                                  Abrun Abubakar

Ahmad Subagja

Previous board of commissioners                         New board of commissioners 

Insmerda Lebang (president commissioner)                Insmerda Lebang (president commissioner)

Bingrosalto L Tobing                                                   Bingrosalto L Tobing
(independent commissioner)                                      (independent commissioner)

Fachry Ali (independent commissioner)                      M Lobo Balia (commissioner)

Boni Siahaan (commissioner)                                     Suhendro (commissioner)

Lobo Balia (commissioner)                                         Suryadi Saman (independent commissioner)

Suhendro (commissioner)                                          Erfi Triassunu (commissioner)
—JP/ Raras Cahyafitri

Pertamina has five new directors

The Jakarta Post | Fri, 04/20/2012 9:37 AM

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JAKARTA: State oil and gas firm PT Pertamina announced on Wednesday that State-Owned Enterprises Minister Dahlan Iskan had decided to install five new directors in the company.

The directors are Chrisna Damayanto as processing director replacing Edi Setianto, Hanung Budya Yuktyanta as business and marketing director replacing Djaelani Sutomo, Evita Maryanti Tagor as human resources director replacing Rukmi Hadi Hartini, Luhur Budi Djatmiko as general affairs director replacing Waluyo and Hari Karyuliarto as gas director.

According to a media statement sent by the company, Chrisna was previously the deputy for refinery operations, Hanung was president director of PT Badak NGL, operator of the Bontang liquefied natural gas (LNG) plant in East Kalimantan, Evita was president director of PT Tugu Pratama Indonesia, Luhur was the head of internal monitoring division and Hari was Pertamina’s corporate secretary.

Thus, Pertamina currently has nine directors. In addition to the five newly installed officials, the four others are Karen Agustiawan as president director, M. Afdal Bahaudin as investment development and risk management director, M. Husen as upstream director and Andri T. Hidayat as finance director.