Antam seeks to lower dividend payment

State nickel and gold miner PT Aneka Tambang (Antam) said on Monday it planned to reduce its maximum dividend payment to 30 percent of net profit, effective next year, Reuters reported.

In a statement published in local newspapers, the state-owned firm also said it would seek shareholder approval later this month to issue bonus shares.

"The agenda will be...to approve...to limit the cash dividend to a maximum of 30 percent of the yearly net profit after tax," the statement read.

Antam's dividend payout ratio was 50 percent in 2000 and 40 percent in 1999.

Indonesia is struggling to raise domestic revenue to help plug this year's budget deficit of 2.5 percent of gross domestic product (GDP). The 2001 deficit was 3.7 percent of GDP.

Antam said it would seek shareholder approval on the plans at a meeting scheduled for June 19.

The company is also seeking shareholder approval to pledge a large part of its assets as collateral for financing a third ferronickel smelter project, which would double its output to around 25,000 tonnes a year.

Antam has been negotiating with German export credit agency Hermes, which backs project financing from IKB Bank of Germany, to help fund the project.

Last week Antam said it was considering issuing around $150 million in bonds as a backup if the financing from Hermes fell through. (*)