Indonesia’s state-controlled tin producer PT Timah is proposing lower dividend payments than normal at its annual general shareholders meeting, taking place on 19 April, in order to allow more investment in upgrading its production facilities.
“From year to year, we pay dividends at 50 percent of our profits. This year, we’re proposing 30 percent, and hope that the ratio approved won’t be more than 40 percent,” Timah president director Wachid Usman told the Jakarta Post.
The company paid out Rp 474 billion US$52 million) in dividends in 2011. Wachid said Timah needed Rp 1.4 trillion (US$153 million) for investment this year, down from an estimated Rp 1.8 trillion to Rp 2 trillion in an earlier plan. The company has dropped some diversification plans and is concentrating on upgrading its dredging, processing and smelting facilities.
