Bakrie one of 20 firms to get preshipment loans

JAKARTA (JP): The Bakrie Group revealed on Wednesday it was one of 20 companies which received preshipment loans from Bank Indonesia.

The business group said in a statement it received the loans through state banks Bank Negara Indonesia (BNI) and Bank Ekspor Impor Indonesia (Bank Exim).

In early February last year, the central bank provided US$38 million in preshipment financing through BNI and Rp 381 billion through Bank Exim, Bakrie said.

Bank Indonesia Governor Sjahril Sabirin submitted the names of 20 companies which received preshipment credits to the House of Representatives late on Tuesday. But the names were not disclosed to the press.

The central bank governor said Bank Indonesia provided a total of $554 million and Rp 1.8 trillion in preshipment facilities to the 20 companies.

He said 18 of the 20 companies had repaid their debts.

Bakrie acknowledged the preshipment facilities it received through the two state banks turned sour as the economic crisis deepened.

As a consequence, the preshipment loans, along with the business group's other debts, were transferred to the Indonesian Bank Restructuring Agency, Bakrie said.

The group stated that the $38 million in preshipment facilities channeled through BNI was meant to support its export activities.

"However, Bank BNI used the funds to refinance another loan Bakrie received from the bank in November 1997 worth Rp 200 billion," the widely diversified business group said in its statement. (hen)