PT Timah Boss Reveals Why State Revenue from Tin Drops 33%

TEMPO.CO, Jakarta - Amid news reports of the Bangka Belitung tin mining corruption case, which is said to have cost the state up to Rp271 trillion, the CEO of the state-owned tin mining giant, PT Timah, revealed a 33 percent decline in state revenues from the tin sector.

Ahmad Dani Virsal, president director of PT Timah, said that state revenue from tin exports would reach Rp12.5 trillion in 2022. A year later, it fell to Rp8.392 trillion, "or a decrease of 33 percent."

He said that throughout 2023, tin production volume reached 14,855 tons, down by 26 percent from the previous year. In addition, the selling price of tin in the global market also decreased last year due to oversupply.

"Production has decreased, and what's worse, the selling price of tin has also decreased, so the income is very low. "The selling price is decreasing because the world market is oversupplied," he said during a hearing with the House of Representatives Commission VI in Jakarta on Tuesday, April 2, as quoted by Antara.

Meanwhile, the company's earnings before interest, taxes, depreciation, and amortization, or EBITDA, was only Rp684 billion in 2023, a significant 71 percent drop from Rp2.37 trillion in 2022.

"The peak load was unchanged, the peak cost was also the same, but our income dropped massively because of the drop in production," Ahmad said.

He added that the company's asset and equity values had also declined. In 2023, PT Timah's assets stood at Rp12.85 trillion, down 1.6 percent from 2022, while its equity fell from Rp7.04 trillion in 2022 to Rp6.242 trillion in 2023.

"Meanwhile, our interest-bearing debt was about Rp3.5 trillion, up 26 percent," he said. "This was because we experienced cash flow difficulties, so we increased the loan," he said.

Antara

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