Bimantara buys 25 percent stake in 'Metro TV'

JAKARTA (JP): Publicly listed PT Bimantara Citra agreed on Tuesday to invest Rp 40 billion (US$3.7 million) in equity participation in the newly operated TV station PT Media Televisi (Metro TV).

Bimantara's newly appointed president, Joseph Dharmabrata said the company had been given a 25 percent ownership in the new television station in return for its investment.

The remaining 75 percent share of Metro TV is controlled by Surya Paloh, the owner and publisher of Media Indonesia daily.

"We're confident that Metro TV will survive despite the tight market," he told reporters, following the company's annual shareholders meeting.

He said that Bimantara, which controls a 69.8 percent stake in Indonesia's first private TV station Rajawali Citra Televisi Indonesia or RCTI, saw TV broadcasting as a promising business, given a continued increase in advertisement spending on TV.

According to him, spending on TV advertisments will grow about 30 percent this year, compared with 40 percent growth in 2000, and 22 percent in 1999. But he did not provide any figures.

Metro TV was launched to air as the first news TV station in November last year, initially controlled by Surya Paloh with a 99 percent stake and his friend Rahni Lowhur with 1 percent stake.

Joseph said Bimantara would also provide Metro TV Rp 125 billion in loans to help the TV station to procure broadcasting equipment.

To date, Bimantara is focused toward business multimedia and broadcasting, telecommunications and transportation after selling its other business units in property and financial services last year.

In the meeting, shareholders also agreed to divest Bimantara's 51 percent ownership worth $13 million in cargo company Indonesia Air Transport to another Bimantara's subsidiary Cardig Air, Joseph said.

The shareholders also approved the sale of a 15 percent share worth $55.8 million in Bimagraha Telekomindo to Indosat, he added.

"Bimantara will allocate the funds acquired from the divestment to finance the expansion of its main businesses," he said, adding that Bimantara and its subsidiaries had settled all of their debts.

In the meeting, the shareholders also agreed to change the composition of the board of commissioners and board of executives.

In the new board, Rosano Barack was installed as chief commissioner, with Hary Iswanto Tenoesudibyo as deputy chief commissioner. The members of the supervisory board include M. Tachril Sapi'ie, John Prasetyo, Shadik Wahono and Djoko Leksono Sugiarto.

Josep Dharmabrata was named as the new president, Hidayat Tjandradjaya as new vice president, with Nurhadiyono Nurjadin and A.Edwin Kawilarang as directors.

Joseph said Bimantara's revenues increased 25 percent to Rp 1.76 trillion from Rp 1.4 trillion in 1999, while its net profit rose to Rp 202.5 billion after suffering a loss of Rp 218 billion in the previous year.

The revenue came mainly from the transportation business unit which contributed 46 percent of the total, while the multimedia business unit contributed 38 percent.(05)