Bakrie will decide on steel plant in September

Bakrie will decide on steel plant in September

TOKYO (Reuter): PT Bakrie & Brothers president Tanri Abeng
said yesterday that he expected to finalize a possible Indonesian
steel plant project, likely to involve British Steel Plc, by
September.

"I think we have to make some decision later, I would say
towards the end of the third quarter. By September we should make
a decision," he told Reuters.

Bakrie said earlier this month that the company was holding
talks with possible venture partners, including British Steel, to
build a steel plant in Lampung, South Sumatra.

Asked if British Steel will definitely be a partner in the
project, Abeng said: "As far as British Steel and Bakrie, it's
pretty much a sure relationship."

Abeng, who is in Tokyo to attend a conference, said the
company was still evaluating or refining the feasibility study.

He also said it was still evaluating the site, whether it will
be in Lampung, or in the Cilegon area. Assurances about
electricity were needed for the Lampung site, he said.

Abeng added that British Steel and Bakrie intended to invite
other partners as well, mentioning Japan's Kawasaki Steel Corp
and Indonesian conglomerate the Lippo Group.

"What we may do is combine forces because we don't want to
have excess capacity." he said.

"If you are too greedy, you can have problems. We prefer to be
more accommodative and develop alliances rather than
competition," he added.