Bimantara holds up over $1b projects<\/p>\n
JAKARTA (JP): The Bimantara Group says it will either postpone
\nor scale down projects worth in excess of US$1 billion even
\nthough they are not affected by the government's retrenchment
\nprogram.<\/p>\n
Peter F. Gontha, a commissioner of the business group, said
\nFriday that large-scale projects which had been postponed
\nincluded refinery projects in Cilacap, Central Java, and
\nSitubondo, East Java.<\/p>\n
\"All small projects will go ahead,\" Gontha told journalists
\nafter the signing of a business deal with Britain's BP Chemicals.<\/p>\n
The group hopes to resume the projects after the monetary
\nsituation returns to normal in one to two years, he said.<\/p>\n
Bimantara had planned to develop the project through its
\nsubsidiary PT Asia Pacific Petroleum Ltd.<\/p>\n
At least 36 companies have applied for licenses to build and
\noperate oil refineries, according to government data.<\/p>\n
The Nusamba Group, which is controlled by timber tycoon
\nMohammad \"Bob\" Hasan, said that it would also enter the
\ndownstream oil industry to benefit from the easing of the
\ngovernment's oil industry policy.<\/p>\n
Under the new policy, private refinery companies are allowed
\nto sell their petroleum products in the local market through
\nstate-owned oil company Pertamina. They were previously only
\nallowed to produce finished oil products for export.<\/p>\n
The government said last week it would either postpone or
\nreview projects worth over Rp 111.18 trillion ($38 billion) as
\npart of its measures to handle the sharp drop in the rupiah
\nagainst the U.S. dollar.<\/p>\n
The 75 postponed projects include the gas-fired Pasuruan power
\nplant in East Java, partly owned by Bimantara subsidiary Pasuruan
\nPower Company.<\/p>\n
Gontha said Bimantara accepted the government's retrenchment
\npolicy even though it would have to pay additional costs due to
\nthe postponement of its projects.<\/p>\n
\"We need to tighten our belts but there is no need to get very
\ndistressed,\" he said. \"Because even foreign analysts say the
\nsituation in Indonesia is better than in other neighboring
\ncountries.\" (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bimantara-holds-up-over-1b-projects-1447893297",
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