Djajanti, MMC sign $250m business deal

JAKARTA (JP): The Djajanti Group of Indonesia and Malaysia Mining Corporation (MMC) have agreed to promote cooperation in the fishery, agricultural and cement businesses involving investments of US$250 million.

The agreement on the cooperation, under a counter-investment plan, was signed in Jakarta on Wednesday by Djajanti Group's president, Burhan Uray, and MMC's president, Ibrahim Menudin, in a ceremony attended by Malaysian Prime Minister Mahathir Mohamad and Indonesia's Coordinating Minister for Economy and Finance Saleh Afiff.

With the counter-investment cooperation, Djajanti is committed to investing $50 million in an integrated fishing project in Penang, Malaysia, while MMC plans to invest $100 million for the construction of a new cement plant on Seram Island, Maluku, and another $100 million for developing a palm tree plantation in Irian Jaya, Burhan said.

He said the investment cooperation is supported by the operation of a new joint venture, PT Maluku Dinamika Semen, which was recently set up by the two parties.

Cooperation between Djajanti and MMC, a Malaysian state-run firm listed on the Kuala Lumpur and London stock exchanges, started on Oct. 24, when MMC bought 30 percent of PT Artika Optima Inti's shares worth $147 million. Artika Optima is a subsidiary of the Djajanti Group, which is led by prominent business tycoon Sudwikatmono.

Artika Optima is now in its final preparations for listing its shares on the Jakarta Stock Exchange.

Burhan said both parties are also committed to exporting fishery products and cement. "We plan to export cement to Papua New Guinea," Isfan Fajar Satryo, president of Maluku Dinamika Semen said.

Burhan said that fishery products in Penang will be exported to China, Hong Kong, Australia, Japan and some Asian countries.(fhp)