Djajanti, MMC sign $250m business deal

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)