President Director of MIND ID Expelled by Democratic Politicians, This is the Chronology
, Jakarta - Mind ID Director or PT Indonesia Asahan Aluminum (Persero) Orias Petrus Moedak involved in a debate with Democrat Politician Muhammad Nasir in a Hearing Meeting (RDP) with Commission VII of the Indonesian House of Representatives (DPR), Tuesday, 30 June 2020. The heat of the debate had made Nasir expel Orias from the meeting room.
Orias initially explained the matter of holding a mining SOE or MIND ID issuing new debt worth US $ 2.5 billion. The loan is for refinancing a number of debts that will mature in the next few years, especially at the parent level or Inalum. In addition, the funds are used to acquire 20 percent of PT Vale Indonesia Tbk's shares.
"We refinance US $ 500 million (due) next year, and US $ 500 million for 2023. The total refinance is US $ 1 billion. We will use the rest to refinance the debt of the subsidiary with high interest, and US $ 500 million to buy Vale, "he said.
He explained refinancing debt bonds that will mature in 2020 and 2023, the company buys bonds directly from bondholders. Then, Inalum offered bondholders a new bond with a longer tenor.
By issuing this new debt, the interest expense borne by the company is 0.7 percent lower than the previous average interest expense. Wahasil, currently the average interest expense borne by the company is in the range of 5.4 percent per year.
"We offer old bondholders to sell, we exchange with a longer tenor. so that we are not depressed from the side of cash flow. What was exchanged was US $ 1 billion, "he said.
Orias Petrus Moedak explained that bond instruments are not debt with collateral asset ties as collateral. Debt issuance practice like this, he continued, is a normal thing to do by corporations everywhere.
However, Commission VII member from the Democratic Party fraction Muhammad Nasir kept asking questions related to MIND ID's ability to pay debts. He also questioned the manner and mechanism of bond debt issuance that did not use collateral.
"What is the potential for defaults? Your task is to ensure that this debt problem is resolved, not add more debt, more debt. If it's like that, high school graduates can sit in your chair, "Nasir said.
Orias stressed the company is optimistic that it can repay the debt. This was also confirmed by the rating given by the international rating agency for the company and the debt instruments.
"I am optimistic that we can pay, and all those who give loans are optimistic we can pay. If there has to be debt again, that's an option. If it is indeed difficult for us, but I am optimistic we can pay, and the loan holders are also optimistic, "said Orias.
Orias also emphasized that the company has a strong cash position, reflected in the current cash position of Rp 42 trillion. With productivity going forward, he said there was no need to worry about this debt issuance.
But Nasir continued to chase Orias with a similar question. Nasir asked about the company's ability to pay debts and asked for detailed data.
Orias Petrus Moedak interrupted the conversation by answering the data. But Nasir asked Orias to leave the meeting room if he no longer brought data in the meeting with the DPR.
Orias responds to Nasir. He said he would go out of the meeting room when asked and if he had the blessing of the chair of the meeting. The condition of the meeting heats up until Nasir hits the table.
"If you do this again, I will tell you to get out of this room," Nasir said at Commission VII of the Jakarta House of Representatives on Tuesday, June 30, 2020.
The tension of the debate began to recede when the Chairman of the House of Representatives Commission VII Alex Noerdin spoke up. He asked for the RDP to be continued with further exposure from the MIND ID and responses from other members of Commission VII of the Indonesian Parliament.