Dipasena to receive $240m<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Southeast Asia's largest, yet long-troubled shrimp farming firm,
\nPT Dipasena Citra Darmaja, has been given a much-needed boost as
\nthe Asset Management Company (PPA) managed to seal a US$240
\nmillion commitment to help finance the firm's revitalization.<\/p>\n
The commitment was secured from PT Renaissance Capital Asia
\nand PT Recapital Advisors, PPA chairman Mohammad Syahrial said on
\nThursday. PPA is the state agency tasked with managing and
\nsupervising assets formerly belonging to deeply indebted
\nbusinesses that were taken over by the state.<\/p>\n
Syahrial said that the agency had on Sept. 23 named the two
\nfinancing firms as Dipasena's preferred creditor, over Transagro
\nInvestment, PT Laranda Powerindo and Fortune Alliance
\nInvestments.<\/p>\n
In the deal, Renaissance and Recapital will provide a total of
\n$150 million for Dipasena's working capital, and some Rp 900
\nbillion ($90 million) in loans for the company's shrimp farmers.<\/p>\n
Dipasena operates under what is known as a "core-plasma"
\nscheme, in which the company acts as a nucleus providing loans to
\nshrimp farmers, but in return the farmers are required to sell
\ntheir produce to the company.<\/p>\n
"We chose Renaissance and Recapital's proposal over the others
\nas they were the only ones willing to provide credit for the
\nfarmers, and had better value-added prospects at the end of their
\ndebt-to-equity option within two years," Syahrial explained.<\/p>\n
"They also agreed that the government may retain control of
\nDipasena's management board, and committed that they will not
\nsell Dipasena back to its previous owner."<\/p>\n
The government took over Dipasena from Gajah Tunggal Group
\ntycoon Sjamsul Nursalim to partly settle his Rp 28 trillion debt
\nto the state following the 1997 Asian financial crisis.<\/p>\n
Controversy surfaced as Dipasena's assets turned out to be
\nvery low, resulting in the government failing to sell the company
\nto investors at a premium price, while Sjamsul allegedly tried to
\nbuy it back at a fire-sale price.<\/p>\n
At its peak in 1996, Dipasena could produce an annual $167
\nmillion worth of shrimp, which was mostly exported to Japan, the
\nU.S. and Europe, from its 186,000 hectares of shrimp ponds. Its
\nproduction now amounts to only $40 million a year; approximately
\n30 percent of its maximum capacity.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dipasena-to-receive-240m-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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