Astra decides to retain its board of directors
Astra decides to retain its board of directors
JAKARTA (JP): Indonesia's biggest carmaker PT Astra
International decided to retain its board of directors yesterday
ending speculation a change of management was imminent.
At an extraordinary general meeting Astra approved a change in
its board of commissioners but not its board of directors.
As expected Mohamad "Bob" Hasan of the Nusamba Group was
appointed as new chief commissioner. Hasan is a close associate
of President Soeharto.
Hasan said Astra had performed well and the new board of
commissioners would not change the board of directors.
"Why change if they have been doing well?" he asked.
Nusamba group is 80 percent owned by three foundations chaired
by President Soeharto, while the rest is owned by Bob and Sigit
Hardjojudanto, the President's eldest son, who own 10 percent
each.
Nusamba's entry into Astra International was purely a business
transaction.
"There is no political connection, though I have known
President Soeharto for more than 40 years," he said.
Bob said the company would maintain its corporate goals and
not change its core business.
"The company's remarkable achievements should be kept up," he
said.
He said Astra would improve management performance and
increase the local content of its cars.
Astra launched recently a new model Kijang with 45.8 percent
local content.
To increase local content Astra could produce components
itself or buy from local producers but said the latter was more
likely.
"It is better to cooperate than to produce," he said.
Astra president Theodore P. Rachmat said the firm's corporate
strategy would be left to the board of commissioners and
shareholders.
Rachmat said the commissioners and directors would meet soon.
"There will be an agreed plan of action worked out," he said.
Rachmat said the board of commissioners had not given the
directors any input so far.
He said there was no plan for Astra to change its core
business to agribusiness.
The other members of the board of directors are Benny
Subianto, Rudynto Hardjanto, Himawan Surya, Hagianto Kumala, Budi
Setiardharma, Rini Mariani Sumarno Soewandi, Michael D. Rusli and
Denny Bonifasius Walla.
Yesterday's meeting also appointed former chief commissioner
Abdul Rahman Ramly as the new vice chief commissioner. Commission
members include Anthony Salim of Salim Group's Indo Artsa Boga,
Danamon International's Usman Admadjaja, Delta Mustika's Prajogo
Pangestu, Sampoerna Astra Corporation's Putera Sampoerna,
International Finance Corporation's Torstein Stephansen and Arman
Investment Utama's Benyamin Arman Suriadjaya.
Astra's core businesses include carmaking, financial services,
agribusiness, electronics and heavy equipment.
PT Astra International recorded a Rp 340.84 billion (US$143,81
million) net profit as of September 1996. It expects a Rp 450
billion net profit for 1996.
The company's turnover as of September 1996 was Rp 9.99
trillion, up from Rp 9.44 trillion for corresponding period in
1995.
Astra has a 55 percent share of the domestic car market with
its leading brands Toyota, Daihatsu, Isuzu, BMW, Peugeot and
Nissan. (09)
PT Astra International's 10 largest shareholders as of Feb. 3,
1997:
Name of Shareholder, Percentage:
1. Sampoerna Astra Corporation, 14.67 percent;
2. Delta Mustika, 10.68 percent;
3. Nusamba Group, 8.83 percent;
4. Toyota motor Corporation, 8.26 percent;
5. Indo Artsa Boga, 8.19 percent;
6. Danamon International, 5.99 percent;
7. International Finance Corporation, 4.73 percent;
8. Arman Investment Utama, 2.06 percent;
9. Danamon International, 2.06 percent;
10. Gajah Tunggal Mulia, 1.64 percent.
Source : Astra International