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

“This agreement will pave the way for PT Timah to simplify and speed up the payment process to all of its suppliers. Hence, 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 before the signing of the agreement in Jakarta on Monday.

(Read also: Restructuring of major state firms in motion)

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

Mandiri’s financing value for the mining sector increased by 29 percent throughout last year to Rp 15.5 trillion.

Meanwhile, PT Timah expects to produce a total of 30,000 tons of tin in 2017, up from an estimated 25,000 tons last year. (bbn)

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