Bakrie denies selling stake in PT Indocopper

JAKARTA (JP): The chairman of the Bakrie Group, Aburizal Bakrie, has denied rumors that the Group's stake in PT Indocopper Investama Corporation (IIC) is to be acquired by tycoon Mohamad "Bob" Hasan.

Aburizal said that if the Group decided to sell its shares in IIC -- a 9.36-percent stake holder in PT Freeport Indonesia -- it could be acquired by anyone and was not limited to Bob Hasan's PT Nusantara Ampera Bakti (Nusamba).

"Up to now, I have not received word (on the sale) and the Group's board of directors has not yet met to discuss this," he said.

He said that if the board of directors decided to sell the Group's stake in Freeport, he would give everyone an equal opportunity to buy.

"We will sell our stake if the price is right," he said.

Last week Aburizal denied that the Bakrie Group, through its two subsidiaries, PT Bakrie & Brothers and PT Bakrie Investindo, was planning to sell its stake in IIC.

He acknowledged, however, that such a move had been proposed by the Group's financial and investment advisors, Salomon Brothers and Forest International.

The Indonesian government and IIC each hold only a 9.36 percent in Freeport Indonesia because they did not increase their equity capital when Freeport-McMoRan recently increased its share capital and issued new shares. They had previously both had a 10- percent holding.

In December 1992, Freeport-McMoRan bought 49 percent of IIC's shares. As a result, IIC's share composition became: 49 percent owned by Bakrie & Brothers; 2 percent by Bakrie Investindo; and 49 percent by Freeport McMoRan.

Aburizal said that if his company decided to sell its stake in Freeport Indonesia, it would merely be a business strategy which had "nothing to do with politics or external pressure".

Rumors that the Bakrie Group was selling its shares in Freeport Indonesia started earlier this month. Timber tycoon Bob Hasan, through Nusamba was said to be the most likely person to buy the shares.

According to the Kontan weekly, Nusamba's shares are owned 10 percent by Bob Hasan, who is also the company's president commissioner; 10 percent by businessman Sigit Hardjojudanto, who is also President Soeharto's eldest son; and the remaining 80 percent by the Supersemar, Dakap and Dharmais social foundations, all of which are chaired by President Soeharto.

Despite Aburizal's denials, Bob Hasan was quoted by the Bisnis Indonesia daily that negotiations were going on between Nusamba and IIC.

But he refused to mention the stake that his company was seeking in IIC.

Reports also said that Bob Hasan, through his 50-percent ownership in PT Askatindo Mineral Karya, was likely to have a stake in the disputed Busang gold mine.

Askatindo Mineral, owned by a businessman named Sjakareni, was a partner of Canadian company Bre-X when the latter carried out explorations at the mine.

Bre-X, which has been exploring gold deposits in Busang for years, has estimated that Busang has 57 million ounces of gold reserves.

The government has confirmed that Bre-X and Barrick Gold Corp., another Canadian mining firm, had agreed on a 22.5 percent--67.5 percent split of the Busang gold ventures. The remaining 10-percent stake would be given to the Indonesian government.

The Busang gold project sparked controversy last year after Bre-X teamed up with Sigit Hardjojudanto and Barrick with Sigit's sister, Siti Hardijanti Rukmana, to speed up approval to develop the mine.

According to latest developments, however, the government has agreed to allow more local participation in the gold mine.

Another Canadian mining firm, Placer Dome, had also offered to merge with Bre-X and proposed to give Indonesia 40-percent ownership.

Bob was quoted by Bisnis Indonesia as saying that negotiations on the Busang project were underway. Although he refused to mention the stake Nusamba was seeking, analysts estimated that Nusamba is eying a 25 percent share.

This means that Nusamba would require some $1.4 billion to buy the shares. (pwn)