CDC plans to boost RI equity investment

JAKARTA (JP): The London-based Commonwealth Development Corporation (CDC) plans to increase its equity investment in Indonesia despite the economic turmoil, a company executive said here yesterday.

The company's country manager, Mark Edwards, said that CDC would further invest US$76 million with a focus on equity investments into existing business and on a selective basis.

He said that in addition to these investments, the company would also seek opportunities to raise money from the British government's privatization program.

CDC currently has $170 million invested in Indonesia.

The CDC, established by the British government in 1948 to finance long-term projects and to perform private placements, has operated in Indonesia since 1971.

The transfer of CDC status from a British government financial institution to a public/private partnership was announced by British Prime Minister Tony Blair in October last year.

The company has 27 overseas offices all over the world, including four in South East Asia (Thailand, Indonesia, the Philippines and Malaysia).

It has invested more than 1.6 billion (US$2.72 billion) in over 400 business in 54 countries. Around 16 percent of this, or $600 million, is invested in South East Asia.

Around 27 percent of its total portfolio is invested in agribusiness, and 24 percent in infrastructure.

CDC said that its income last year increased by 12 percent to 158 million from 141 million in 1996.

Its pretax profit was down by 10 percent to 85 million from 95 million in 1996.

CDC's after-tax profit last year increased 3 percent to 64 million compared from 62 million in 1996. (gis)