Budi named Astra's new president director

Budi named Astra's new president director

Dow Jones, Jakarta

PT Astra International, the country's largest automotive company, named on Tuesday former vice president director Budi Setia Dharma as the new president director in the company's annual shareholders' meeting.

Budi replaced Teddy Rachmat, who was named as president of board of commissioners, in an annual shareholders' meeting.

The company promoted former director Michael Ruslim to vice president director. It also named Kour Nam Ting, John Slack, Prijono Sugiarto, and Gunawan Geniusahardja as directors.

In the meeting, the company said it remains undecided on whether to push ahead with a rights issue to help repay debt worth almost US$1 billion.

Budi said the company is awaiting the results of a study from its financial adviser on the need for a rights issue before making a final decision.

"We expect the study to be completed at the end this month or early July," he told reporters.

In March, Astra Director John Slack said a rights issue was a "strong possibility," with an indicative range of between $100 million and $150 million.

Astra is currently burdened with debt worth $821 million and Rp 1.065 trillion, with annual payments due until 2006.

In December, the company made an early payment on its debt due in December 2002, in what analysts said was an attempt to send a signal to the market that its cash flow remains strong.

That payment of $34.75 million and Rp 41.14 billion cut its 2002 debt obligation to $139 million and Rp 163 billion.

Budi told reporters that Japan's Daihatsu Motor Co. will inject cash into their joint venture, PT Astra Daihatsu Motor.

The two parties haven't determined the size of the injection, but the move will dilute Astra's share in the joint venture to 30 percent from the current 50 percent, he said.

Budi also said discussions are ongoing with Toyota Motor Corp. about the Japanese car maker raising its stake in their joint auto production venture, PT Toyota-Astra Motor. He expects the discussions to be finalized within the next two months.

Astra is 32 percent owned by Singapore's Cycle & Carriage Ltd.