Govt to keep grip on Kanindotex<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad said
\nyesterday that the government will maintain management control of
\nthe troubled textile mill PT Kanindotex through the Federation of
\nIndonesian Batik Cooperatives.<\/p>\n
\"The government will maintain the management contract (of
\nKanindotex) with the federation which has been running the firm
\nsince last September,\" he said as quoted by Antara.<\/p>\n
The government last year assigned the federation to take over
\nthe management of the textile firm after a parliamentary
\ninvestigation revealed that Kanindotex failed to honor its debts
\nof approximately Rp 500 billion (US$232 million) to two state
\nbanks, Bank Bumi Daya and Bank Pembangunan Indonesia (Bapindo).<\/p>\n
The Republika daily quoted yesterday a source at Bank Bumi
\nDaya which said that Robby Tjahjadi, the former owner of
\nKanindotex, once convicted of car smuggler, had teamed up with
\nBambang Trihatmodjo, the son of President Soeharto controlling
\nthe Bimantara Group, and Johannes Kotjo, a former Salim Group
\nexecutive, to regain control of the textile mill.<\/p>\n
Mar'ie declined to comment further on the issue. He told the
\npress: \"You contact both Bank Bumi Daya and Bapindo because they
\nare the ones who warranted the credits for Kanindotex.\"<\/p>\n
Noorbasha Djunaid, chairman of the federation's team which now
\nruns Kanindotex, said earlier this month that the company remains
\nfinancially weak, even though the last four months has seen a
\nsubstantial increase in sales.<\/p>\n
Kanindotex's outstanding debts to the two state banks have
\ngrown to more than Rp 936 billion, excluding about Rp 70 billion
\nin new debts incurred by the new management in a desperate life-
\nsaving bid in the early stages of the rescue program, Noorbasha
\nsaid.<\/p>\n
A member of the House of the Representatives said yesterday
\nthat all moves which will allow Robby Tjahjadi to reacquire his
\nfirm will be \"deplored\".<\/p>\n
\"Our work will be in vain if Robby can re-establish control in
\nKanindotex,\" said Urai Faisal Hamid of the United Development
\nParty's faction in the house.<\/p>\n
Bambang Warih Koesoema, the Golkar legislator who initially
\nexposed Kanindotex's bad debts, is likely to loose his job soon
\nfor his actions, which supposedly deviated from the ruling
\nparty's line.<\/p>\n
Bambang Trihatmodjo and Johannes Kotjo acquired Kanindotex's
\nlisted subsidiary PT Mayatexdian last month through a direct-
\nplacement transaction estimated at between $26 million and $32.52
\nmillion. (hdj))<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-keep-grip-on-kanindotex-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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