Timah signs supplier financing deal with Bank Mandiri

By Thomas Sembiring

Petromindo|Thomas Sembiring

IDX-listed tin giant PT Timah Tbk has sealed a supplier financing deal worth Rp 300 billion with IDX-listed PT Bank Mandiri Tbk to simplify payments to more than 1,000 of the company?s tin suppliers.

Under the agreement, the state-run Mandiri will prepare specific debit cards dubbed PT Timah Mining Cards for 1,000 individual suppliers and 100 companies and cooperatives that act as Timah?s working partners. Timah will then disburse payment to these suppliers through the newly launched cards.

?This agreement will allow Timah to simplify and speed up the payment process to all of its suppliers. As such, it is expected to eventually boost the company?s liquidity and increase supplier morale and productivity as well,? said Mandiri Corporate Banking Director Royke Tumilaar following the signing of the agreement in Jakarta on Monday.

Royke added it was possible for both parties to extend the agreement and increase the financing value over the long run.

Elsewhere, Royke said that Mandiri disbursed Rp 15.5 trillion worth of financing the country?s mining sector last year, up by 29 percent from the previous year. He did not provide projection for this year.

Editing by Reiner Simanjuntak