PT Timah negotiates payment of BPI?s debts

Publicly listed tin mining company PT Timah has started again the negotiation process for the repayment of state owned company PT Bahana Pembinaan Usaha Indonesia?s debts worth US$17 million and Rp 61 billion to the tin producer, Bisnis Indonesia reported on Wednesday.

Roes Aryawijaya, Deputy of State Minister for State Owned Enterprises said that the negotiation had taken place for almost one month. "Hopefully the negotiation will be able to settle the dispute," he said in Jakarta early this week.

But when asked if Timah had agreed to BPI?s offer to surrender its 100-hactare land as the payment of the debts, Roes refused to give his comment.

In 1996, PT Timah bought short-term obligation in the form of medium term notes from PT BPUI but the later defaulted both the payment of the interest and the redemption after the financial crisis hit the country in late 1997.

The total debts that must be paid by BPUI reached a total of US$17 million and Rp 61 billion. (*)