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Jakarta Post

MIND ID records debt increase in Q3 2019, but looks toward 2023 dividends of $1 billion

  • Norman Harsono

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, January 27, 2020   /  02:18 pm
The Jakarta Post Image
A technician checks an excavator at PT Freeport Indonesia’s copper and gold mine in Timika, Papua. State-owned mining holding company MIND ID recorded a debt increase in quarter three 2019, primarily as a result of the company’s US$3.85 billion acquisition of PT Freeport Indonesia in October 2018.(Courtesy of/PT Freeport Indonesia)

State-owned mining holding company MIND ID's debt skyrocketed 378 percent year-on-year (yoy) in the third quarter of 2019 following a multi-billion dollar acquisition and several hefty infrastructure investments. Previously called Inalum before it rebranded in August, MIND ID recorded a debt of Rp 78.3 trillion (US$5.75 billion) in the July-Sept period last year. The majority of the debt came from the $3.85 billion acquisition of mining operator PT Freeport Indonesia inked in October 2018, said MIND ID president director Orias Petrus Moedak. The remaining debt came from early investments in five mineral ore smelters and one coal-fired power plant. “The acquisition is a promising investment but a long-term one. In the short term, we have to go through this period,” Orias told a House of Representatives hearing on Jan.23. ...