Bakrie Sumatra to obtain new loan

Bakrie Sumatra to obtain new loan

The Jakarta Post, Jakarta

PT Bakrie Sumatra Plantations Tbk, a publicly-listed company
specializing in oil palm and rubber plantations, has received an
indicative approval for a US$75 million loan, according to
president director Ambono Janurianto.

The syndicated loan, coming from a mix of foreign and local
banks, will be used to pay off an existing $51.7 million loan
that is due at the end of 2006.

"The indicative interest rate for the new loan is the SIBOR
plus 2.25 percent to SIBOR plus 2.75 percent," said Janurianto,
referring to the Singapore Interbank Offered Rate. "The existing
loan's term is SIBOR plus 3.5 percent, so we'll save about Rp 5
billion."

He said that because the company wanted to use a substantial
portion of its assets as collateral, it would need to obtain
approval from its shareholders before the new loan materializes.

Janurianto, who was speaking after a general shareholders'
meeting on Wednesday, expressed optimism that the company would
reach its revenue growth target of between 15 percent and 20
percent, based on the company's first quarter sales of roughly Rp
150 billion (US$15.90 million).

"The results are in line with our 2005 revenue target of Rp
800 billion," said Janurianto, whose company booked sales of Rp
696 billion in 2004.

He added that the company's dividend payment of Rp 6 per
share, which represents 15 percent of the company's net profit of
95 billion in 2004, was the first in six years. (002)