BNI plans to issue bonds

BNI plans to issue bonds

JAKARTA: State-run PT Bank Negara Indonesia plans to issue
bonds later this year to boost its capitalization and make itself
more attractive to prospective investors.

The bank will issue the bonds in the fourth quarter of the
year at the latest, BNI's treasury general manager Sudirman told
Dow Jones Newswires Thursday.

When BNI's capital structure is more robust, the government
intends to sell some of its shares in the bank, Sudirman, who
like many Indonesians has only one name, added.

In 2000, the government's stake in the listed bank went up to
99.12 percent from 75 percent when it transferred some bond
holdings to the bank to boost its capitalization. The government
has planned to reduce its stake in the bank, but it remains
unclear when it will do so.

"We have to improve our capital structure to make the bank
more attractive to prospective investors," Sudirman said.

While Sudirman didn't specify the size of the issuance, he did
say the bonds will have a five-year maturity.

BNI had originally planned to issue bonds late last year but
then shelved its plans due to high interest rates at home. Since
then, rates have fallen significantly, prompting quite a few
local bond issuances. -- Dow Jones

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ANPAf..r..
CorporateBrief-KPC
Progress made in KPC divestment
JP/14/Brief

Progress made in KPC divestment

JAKARTA: Shareholders of coal mining company PT Kaltim Prima
Coal (KPC) -- Anglo-Australian mining giant Rio Tinto Plc and
Anglo-American energy firm BP Plc -- have reportedly made some
progress in talks with the government over the coal company's
divestment.

KPC said in a statement on Thursday that both parties had
agreed on a number of principles this week, and formal
documentation for final agreement was being prepared.

Under its contract of work, KPC's shareholders should have
sold 51 percent of the company to either the government, state-
owned companies, Indonesian-controlled private firms or
Indonesian nationals last year. But the company's shareholders
and the government agreed to delay the sale until the end of this
month.

KPC noted, however, that its shareholders would not be able
the sell their stake by the deadline unless the South Jakarta
District Court revoked its sequestration order. The court put
KPC's assets in sequestration at the request of the East
Kalimantan provincial government, which is seeking to take
control of the 51 percent stake. --JP

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ANPAf..r..
CorporateBrief-KL-Guthrie
Guthrie to sell RI stake
JP/14/Brief

Guthrie to sell RI stake

KUALA LUMPUR: Malaysia's Kumpulan Guthrie Bhd. plans to sell a
minority stake in Minamas plantations, its Indonesian oil palm
operation, to foreign investors.

However, Group Chief Executive Abdul Khalid Ibrahim declined
to say how much of a stake.

Minamas owns 200,000 hectares of oil palm plantations in
Indonesia's Sumatra and Kalimantan. Guthrie bought the estates in
March 2001 from the Indonesian Bank Restructuring Agency.

Khalid said Guthrie is allowed to sell the 20 percent stake
after a year under the terms of the sale agreement with the
Indonesian Bank Restructuring Agency.

Guthrie owns 100 percent of the second tranche of estates,
which cost it $330 million. -- Dow Jones