Habibie, Prayogo confer on Chandra Asri's fate<\/p>\n
JAKARTA (JP): President B.J. Habibie summoned business tycoon
\nPrayogo Pangestu on Thursday to discuss the fate of his company
\nPT Chandra Asri Petrochemical Center.<\/p>\n
Prayogo, reportedly listed as the third largest debtor to
\nstate banks, after former president Soeharto's two sons, played
\ndown the meeting. He said the discussion concerned a
\nreconstruction project in Mangole Island, Maluku, which was
\ndamaged by an earthquake in December.<\/p>\n
Prayogo has a timber plant on the island.<\/p>\n
\"The President asked me to help rebuild the island, which was
\nrecently destroyed by a quake,\" Prayogo said after the meeting at
\nMerdeka Palace.<\/p>\n
Habibie was accompanied by Minister of Finance Bambang
\nSubianto, State Minister of Empowerment of State Enterprises
\nTanri Abeng and Minister of Industry and Trade Rahardi Ramelan.<\/p>\n
Bambang and Rahardi refused to comment to waiting journalists
\nafter the meeting.<\/p>\n
Prayogo, who appeared tense, almost entered Tanri's car, which
\nwas parked next to his BMW limousine.<\/p>\n
When a journalist shouted: \"What will you do with your
\ndebts?\", Prayogo shook his head and said \"no, no, no\".<\/p>\n
Tanri finally revealed the substance of the meeting, only
\nafter providing a lengthy explanation about the progress of the
\nprivatization and profits of several state-owned companies.<\/p>\n
\"The subject of the meeting was to discuss Chandra Asri's
\n(value) as quite a strategic industry.\"<\/p>\n
Repayments<\/p>\n
Last year, a leading Japanese newspaper, Nihon Keizai Shimbun,
\nreported that the company asked a consortium of banks for a
\nthree-year moratorium on repayments of a US$830 million loan.<\/p>\n
Chandra Asri is a joint venture between Japanese companies
\nMarubeni Corp and Showa Denko KK, and Indonesian partners
\nincluding PT Bimantara Citra, owned by Soeharto's son Bambang
\nTrihatmodjo, and PT Barito Pacific Timber, owned by Prayogo.<\/p>\n
The country's only ethylene producer was set up with the
\nbacking of an investment firm established by Japanese
\nparticipants.<\/p>\n
The $1.88 billion venture has produced 510,000 tons of
\nethylene and 300,000 tons of polyethylene annually since 1995.<\/p>\n
Tanri indicated that a government team led by Bambang Subianto
\nwould formulate the policy of Candra Asri's restructure as a part
\nof real sector development.<\/p>\n
\"There will be no exception. He (Prayogo) must follow the
\nrules of the game issued by the ministry of finance.\"<\/p>\n
Tanri confirmed that foreign companies, including a German
\nfirm, had expressed interest in Candra Asri stakes. He said a due
\ndiligence was still underway.<\/p>\n
Prayogo, known as one of former president Soeharto's closest
\nassociates, reportedly owes Rp 2.6 trillion ($288 million) to
\nstate banks, the third largest after Bambang Trihatmodjo and his
\nassociates (Rp 1.9 trillion, $2.7 billion) and Hutomo Mandala
\nPutra (Rp 1.7 trillion, $400 million).<\/p>\n
When asked to comment about his huge debts, the owner of the
\n7.16 percent stake at PT Astra International replied \"It is not
\nnews\".<\/p>\n
His publicly listed Barito Pacific Group owns 2.7 million
\nhectares of forest concession throughout the country. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/habibie-prayogo-confer-on-chandra-asris-fate-1447893297",
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