JAKARTA (Yosefardi) – State tin producer PT Timah Tbk (TINS) mulls to seek loan of Rp440-660 billion for funding its capital expenditure (capex) of Rp1.1 trillion for this year.
Bank loan will cover 40-60% of total capex. Timah has earlier funded its capex by its internal cash, not loans, as tin products are liquid.
In 2014, TINS’s capex was Rp800 billion. The company plans to expand its tin business this year and also enter into property business.
The company earlier said it plans to develop a mixed-used area in Bekasi, West Java, with investment cost of Rp1 trillion. Timah also has 176 ha land area in Bekasi which values for Rp2 trillion.
Meanwhile coal producer PT ABM Investama Tbk (ABMM) also plans to seek loan of US$105 million, equivalent Rp1.2 trillion, to fund its capex of US$150 million for this year. The company, controlled by Hamami family, would seek loan through bond issue and from banks.