Timah explains its position on Bahana loan workout
Saturday, October 14 2000 - 04:00 AM WIB
State-owned, publicly listed tin miner PT Timah explained on Friday that the company had collected its money loaned to PT Pentasena Arthasentosa totaling Rp 28 billion but still been working out with US$17 million and Rp 61 billion funds it lent to PT Bahana Pembina Usaha Indonesia.
Timah said in a statement that it had got payment from Pentasena in March 1998. And the total amount of its loans to Pentasena was Rp 28 billion, and not Rp 280 as reported by Bisnis Indonesia.
Timah also explained that its loan to Bahana Pembina Usaha Indonesia (BPUI) -- not Bahana Securities as reported by Bisnis Indonesia -- was in the form of collectible money order, totaling US$17 million and Rp 61 billion -- and not US$30 million as reported by Bisnis.
It explained that it had tried hard to collect the money loaned to BPUI. It added that it had asked the helps of Bank Indonesia and the Ministry of Finance as the owners of BPUI and to the Investment Coordinating Board and the Indonesian Bank Restructuring Agency as the administrators of BPUI's assets.
Bank Indonesia controls BPUI by 82.2 percent, while the government, through the Ministry of Finance, controls the rest of 17.8 percent.
Timah noted that both loans had been reported to the public since 1997 through its annual reports.
Timah said that in a hearing with the House of Representatives' Commission VIII on Feb. 9, 2000, the company gave detailed explanation about the backgrounds of the loan to BPUI, efforts to collect it back and difficulties in recouping the fund.
According to Timah's statement, Commission VIII supported Timah's efforts to recoup its funds lent to BPUI totaling $17 million and Rp 61 billion.
Timah issued a statement following a threat by legislator Ramson Siagian of Commission VIII. Ramson, as quoted by Bisnis Indonesia, demanded Timah president Erry Riyana Hardjapamekas to soon recoup Timah's money loaned to Bahana.
Ramson warned Erry, if the latter was still not be able to collect the money, the Commission could propose to the government to replace him with other potential candidate to lead the publicly-listed tin miner. (*)