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