Bakrie to buy Bumi Modern

JAKARTA (JP): Bakrie Capital Indonesia (BCI), a subsidiary of Bakrie and Brothers Group, plans to buy 25 percent of property developer PT Bumi Modern for Rp 27.84 billion (US$11.60 million) from its major shareholder, PT Asuransi Jiwa Bersama.

Bumi Modern's president, Sri Hoedoyo Sontokusumo, said the entry of BCI was expected to strengthen Bumi Modern's business performance.

Sri Hoedoyo said Bumi Modern, which owns the Hyatt Regency hotel in Surabaya and several housing projects, has reportedly suffered financial problems in the hotel business.

Bumi Modern needed fresh funds to improve its finances, Sri Hoedoyo said. "We need a strong partner with a strong financial source," Bisnis Indonesia quoted Sri Hoedoyo as saying. (09)