Citra Aromatic approaches German bank: Shareholder
JAKARTA (JP): PT Citra Aromatic Indonesia is negotiating with a German bank for finance to develop its aromatic plant in Serang, West Java, says the chairman of one of the project's shareholders.
The Medco Group's chairman, Arifin Panigoro, said Tuesday: "We are negotiating with a German bank for a US$102 million loan".
Earlier, Peter F. Gontha, vice president of PT Chandra Asri Petrochemical Center, another of the project's shareholders, said the company had asked Germany's Industrial KreditBank for an $85 million loan to finance the project.
The project is 21 percent owned by Medco, 20 percent by PT Chandra Asri, 20 percent by Japan's Marubeni, 5 percent by Germany's Krupp Uhde and 34 percent by local companies.
Arifin said the project would be 75 percent loan financed and 25 percent financed with the company's own equity.
"Construction is due to start later this year," Arifin was quoted by Bisnis Indonesia as saying after Medco Energy's annual shareholders' meeting.
He said the Investment Coordinating Board had approved the project.
It will be built on four hectares next to PT Chandra Asri's olefin facilities in Cilegon, West Java. It is due to start commercial production in mid 1999.
The plant will be able to make 125,000 tons of benzene, 72,000 tons of toluene and 29,000 tons of mixed xylene a year.
PT Chandra Asri will supply the raw material, pyrolysis gasoline. Chandra Asri produces and exports 240,000 tons of pyrolysis gasoline a year.
Arifin said Citra Aromatic would export between 70 percent and 80 percent of its products.
Medco Energy's director of exploration and production, John. S Karamoy, said Medco's subsidiaries PT Expan Sumatra and PT Expan Kalimantan had discovered three oil and gas wells in South Sumatra early this year.
Medco Energy and state-owned fertilizer maker PT Pusri have agreed to develop fertilizers with the gas.
Medco Energy increased its net profit to Rp 40.2 billion in 1996, from Rp 30 billion last year. The company expects to increase its net profit to Rp 70 billion this year. (jsk)