Bimantara to set up US$652m power plant

JAKARTA (JP): Bimantara Citra will spend US$652 million setting up a 450 MW coal-fired power plant in Cilacap, Central Java, in cooperation with local and foreign companies.

The group's finance director, Abdul Kadir Assegaf, said yesterday Bimantara had set up a joint venture firm, PT Citra Kartika Daya, to operate and manage the plant.

Bimantara has a 15 percent stake in the joint venture. PT Kanagrahan Kartika has 10 percent, while its foreign partners -- Mitsubishi Corporation and Duke Corporation -- own the rest.

"The construction of the plant will begin by the end of this year and is scheduled for completion in 2000," he said after the company's annual shareholders meeting.

Kadir said Bimantara had an option to increase its stake to 20 percent.

About 25 percent of the funds for the power project will come from the joint venture's equity, while 75 percent will be borrowed.

He said several multinational financial institutions were interested in providing money for the plant.

The president of Bimantara's automotive division, Jongkie D. Soegiarto, said the group had signed a memorandum of understanding with the Korean Halla Group's Mando Machinery to set up a joint venture company to make breaks, dashboards, air conditioners and electric parts.

He said the joint venture would build its plant in Bimantara Hyundai Indonesia, a car making compound being built by Bimantara in cooperation with South Korea's Hyundai in Purwakarta, West Java.

Bimantara will spend US$400 million on the compound.

Jongkie said Bimantara would spend $60 million to $80 million on the joint venture.

The joint venture is equally owned by the two groups.

Jongkie said Bimantara planned to cooperate with nine car component vendors from Korea and Taiwan.

He said Bimantara would launch a new sedan in early 1999 with local content of 60 percent.

"We cannot mention the price but it will be competitive," he said.

Yesterday's shareholders meeting approved a Rp 20 dividend, up from Rp 15 in 1995.

Bimantara posted a Rp 157.51 billion net profit last year, up 33 percent from 1995's Rp 117.78 billion.

Earnings per share rose from Rp 134 in 1995 to Rp 155 in 1996.

The business group, controlled by President Soeharto's second son Bambang Trihatmodjo, had net revenue of Rp 890.45 billion, up from Rp 735.79 billion in 1995.

The revenue came from the group's broadcasting business (Rp 291.21 billion), telecommunication business (Rp 229.44 billion), transportation and automotive division (Rp 179 billion), and other business division (Rp 186.81 billion).

Bambang, who was at the meeting, refused to make a revenue projection for this year.

"We cannot mention that in regards to our domestic and foreign investors," he said. (09)