Fri, 04 Nov 1994

Bakrie gets $21.7m loan

JAKARTA (JP): PT Fajar Bumi Sakti, a coal mining company controlled by the Bakrie family through PT Bakrie Investindo, secured a US$21.7 million syndicated loan from eight foreign and domestic commercial banks yesterday.

Indra Hasbar, Fajar Bumi Sakti's director, said after signing an agreement on the loan here that it will be used to finance the expansion of the company's annual production capacity to 750,000 tons from 180,000 tons at present.

"We aim to gain $85 million from exports of our products in the first five years of operation," he said, adding that the mine is estimated to produce coal within 15 years.

Bakrie acquired Fajar Bumi Sakti, which controls 1,000 hectares of a mining area in East Kalimantan, in 1992.

The loan was arranged by Bank Nusa International -- also owned by Bakrie -- the American Express Bank Ltd., ANZ Panin Bank, Bank Bira, Bank Dharmala, Panin Bank, IBJ Indonesia Bank and Saehab Merchant Bank of South Korea. (hdj)