Sluggish Market Prompts PT Timah to Seek Income Outside Mining
8 August 2016 11:58 WIB
TEMPO.CO, Jakarta-State-owned tin miner PT Timah is eyeing to book revenues from outside the mining industry. The company is gearing up to diversify its businesses to cope with the sluggish global tin markets.
PT Timah president director Riza Pahlevi said the company has several subsidiaries engaged in businesses other than mining. The five subsidiaries are Timah Industri, Bakti Timah Hospital, PT DOK and Perkapalan Air Kantung, PT Timah Karya Persada Property, and PT Timah Agro Manunggal.
"We are targeting the subsidiaries to contribute 10 percent to our total revenue," he said at the IDX building yesterday.
In the first quarter of this year, PT Timah posted a loss of Rp138.84 billion, a 2,069% increase from last year's Q1 loss of Rp6.4 billion.
Erdikha Elit Sekuritas chief researcher Wilson Sofan said a business diversification is indeed an alternative amid a sluggish market. But the company must be careful in selecting its options and grabbing market opportunities.
According to Wilson, from the selection of alternatives, the hospital business is the most prospective as the demand for health services will never decline.
FAIZ NASHRILLAH
