Bogasari's wheat-milling monopoly to be kept: Bulog<\/p>\n
JAKARTA (JP): The government will maintain the Salim Group's
\nwheat-milling monopoly despite the group's plan to inject its
\nassets in PT Indofood Sukses Makmur, which owns PT Bogasari Flour
\nMills, into its Singapore-based subsidiary, QAF.<\/p>\n
Chief of the National Logistics Agency (Bulog), Beddu Amang,
\nsaid yesterday the monopoly would be maintained because even
\nthough the group's majority shares would shift to Singapore,
\n\"basically the mode of their operation will not change\".<\/p>\n
PT Bogasari Flour Mills, a subsidiary of Indofood, has held
\nthe wheat-milling monopoly since the late 1960s.<\/p>\n
PT Indocement Tunggal Prakarsa, 60 percent owned by the Salim
\nGroup, 25 percent by the government and 15 percent by the public,
\nhas proposed a spin-off and sale of its 50.1 percent share in
\nIndofood.<\/p>\n
The move would be followed by the sale of 50.1 percent of
\nIndofood's shares to QAF, a listed company in Singapore.<\/p>\n
The Singapore firm, which is expected to issue rights shares
\nto finance the deal worth up to Rp 4.6 trillion (around US$1.9
\nbillion) will become the holding company of Indofood, replacing
\nIndocement.<\/p>\n
Beddu said yesterday that although the majority shares would
\nbe held by QAF in Singapore if the plan went ahead, Bogasari
\nwould still be based in Indonesia.<\/p>\n
\"Bogasari's operations will carry on as usual, meaning that
\nBulog will still have control over the wheat imports as well as
\nover Bogasari's production and supplies,\" he said at a hearing
\nwith members of the House of Representatives' commission VII on
\nfinance and food.<\/p>\n
Beddu said it was for this reason that he had no objection of
\nthe Salim Group's plans.<\/p>\n
\"We have no problem with the plans, because Bulog's role will
\nremain the same,\" he said.<\/p>\n
The Econit Advisory Group last week asked the Salim Group to
\ncancel their restructuring plans, saying it could harm
\nIndonesia's investment climate.<\/p>\n
Econit said the asset injection into the Singaporean company
\nwould give the impression that the business and political climate
\nin Indonesia was no longer secure and would discourage investors.<\/p>\n
The move would also make it impossible for the government to
\nintervene in Indofood because the government -- with its 25
\npercent stake in Indocement -- indirectly currently owned 12.89
\npercent of Indofood.<\/p>\n
Therefore if Indocement went ahead with its plans, the
\ngovernment would automatically lose its stake in Indofood.<\/p>\n
Econit said the Salim Group's plan to inject Indofood's assets
\ninto the Singaporean firm was regrettable, given the government's
\nstrong support of the business group since its early years. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bogasaris-wheat-milling-monopoly-to-be-kept-bulog-1447893297",
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