TPL aims to return to local stock markets<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
Pulp company PT Toba Pulp Lestari (TPL) plans to \"relist\" its
\nshares on the Jakarta Stock Exchange (JSX) and the Surabaya Stock
\nExchange (SSX) in the second quarter of next year, according to a
\ncompany senior executive.<\/p>\n
TPL, previously known as PT Inti Indorayon Utama, was removed
\nfrom the local bourses in February 2002 after its pulp mill in
\nNorth Sumatra was forced to shut down due to strong protest from
\nlocal people and environmental groups.<\/p>\n
But the company resumed operations in March this year, under a
\nnew mission aimed at protecting the environment as well as
\nhelping to improve the welfare of local people.<\/p>\n
\"We are working hard to restore our operation. Please bear in
\nmind that currently we are working under the close scrutiny of
\nthe government, the public and LSMs (non-governmental
\norganizations),\" TPL vice president Wagimin Wongso told a media
\nconference following the company's annual shareholders meeting on
\nFriday.<\/p>\n
The meeting appointed Dedy Sutanto as president commissioner,
\nSabam Leo Batubara as commissioner, former North Sumatra vice
\ngovernor Lundu Pandjaitan as independent commissioner, Jan olof
\nSvensson as president director and Wagimin Wongso as vice
\npresident director.<\/p>\n
After being closed down for around five years, TPL now
\nexpected to be able to produce 90,000 to 100,000 tons of pulp
\nthis year, of which 70 percent would be exported to Japan, South
\nKorea, China and Taiwan.<\/p>\n
Last year, Hong Kong-based finance company Stearn Capital
\nbought more than $300 million-worth of TPL debt and swapped it
\nfor 40 percent of the pulp company's equity.<\/p>\n
TPL was founded by tycoon Sukanto Tanoto of the Raja Garudamas
\nGroup in 1986.<\/p>\n
TPL was battered by years of closure, estimated to have cost
\nthe company around $8 million in losses every month.<\/p>\n
Wagimin said the company had dedicated a minimum 1 percent of
\nits annual net sales to a foundation managed by the people living
\naround the mill. They live in a small town on the banks of the
\nAsahan River, which flows from Lake Toba, North Sumatra.<\/p>\n
\"This year we have already allocated five billion (rupiah) to
\nthe foundation,\" he said.<\/p>\n
Apart from these funds, the company has also dedicated funds
\ntoward community development, such as for fixing the road used by
\nlocal people and providing scholarships for students there.<\/p>\n
\"I cannot tell you the exact amount involved, but it is a
\nlot,\" said Wongso, adding that repairing the road had cost the
\ncompany some Rp 7 billion (US$823,000).<\/p>\n
TPL has also outsourced its trucking and logging divisions to
\ncompanies owned by people living close to the mill, in a bid to
\ntrickle its profit down to the community.<\/p>\n
\"We are helping local entrepreneurs to buy trucks through a
\ncredit scheme. They will repay the loans by giving the company a
\ncut of their revenue,\" said Eduard Depari, senior advisor at the
\ncompany.<\/p>\n
Depari stated that while the company was perceived as arrogant
\nbefore, it was now trying to change its image into that of a more
\ncommunity-friendly organization.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tpl-aims-to-return-to-local-stock-markets-1447893297",
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"sponsor": "Okusi Associates",
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