Government demands PT Timah to pay dividend

The government as the majority shareholder has demanded publicly listed company PT Timah to allocate up to 30 percent of the company?s net profits of Rp 11.3 billion in 2002 as dividend to the company?s shareholders, Bisnis Indonesia reported on Thursday.

"There should be a dividend for the government and other shareholders because the company booked a profit last year," Roes Aryawijaya, the Deputy of State Minister for State Enterprises was quoted by the newspaper as saying.

Roes did not unveil the percentage of the dividend payment to be demanded by the government but he said that the dividend payout ratio should be decided in the company?s extra-ordinary shareholders meeting that would be held today (Thursday).

Sources said that the management will propose to distribute dividend of about 30 percent of the company?s net profit in 2002.

In an extra-ordinary meeting in June, last year, the shareholders approved the management?s proposal to delay the payment of the company?s final dividend for 2000 worth about Rp 59.85 billion or Rp 118 per share until June 2003 and May next year.

PT Timah, one of the world?s major tin company, is currently under a massive consolidation measure to help it come out of its serious financial crisis. The company has encountered a financial problem since the collapse of tin prices in the world market several years ago. (*)