Former Astra owners ponder stake buyback

JAKARTA (JP): The Soeryadjaya family, the founder and former owner of publicly listed PT Astra International, is expressing strong interest in buying back their stake in the auto giant.

Edward Soeryadjaya, the eldest son of Williem Soeryadjaya, said his family were very interested in buying back the automotive company's shares, but was still indecisive whether they had the capability to realize the plan.

"We all have an interest in buying back the Astra shares, but the question is are we capable?," Edward said.

He, however, declined to comment on earlier reports that his family, in cooperation with foreign partners, was planning to buy Astra stakes.

"Oh that, I prefer not to give a comment on that."

Earlier reports said the family were teaming up with New Bridge Capital and Gilbert Global Equity Capital of the United States to buy a 19.9 percent stake in Astra.

The Soeryadjayas were forced to sell their entire Astra stake in 1993 to help pay off obligations in their dissolved Bank Summa, which was then led by Edward.

Edward said that Indonesia offered a lot more certainty and security under the newly formed government, but he said his investment priorities were not in the automotive industry.

"We are interested in the information business in Indonesia, namely information technology and media business."

He said his family was still interested in its rural bank business involvement with the Nahdlatul Ulama (NU) and other parties.

Edward said he would support the continued expansion of the rural bank business.

NU teamed up with the Soeryadjayas in the early 1990s to establish rural banks under the name of BPR NU Summa. The rural bank operation continues despite the collapse of Bank Summa.

"We will expand the network of rural banks BPR NU Summa from the existing 16 banks to between 40 and 50 banks in about one and a half years time.

"With the current change in the political situation, I will be more often in Jakarta than Singapore," Edward said.

He acknowledged that the majority of his family's business interests had shifted to Singapore following the collapse of Bank Summa due to the excessive exposure of property loans.

"Now we will restart business in Indonesia with our old friends from the Nahdlatul Ulama," he said.

NU is the country's largest Moslem organization and is chaired by President Abdurrahman Wahid.

Edward expressed confidence in the country's economic recovery, saying that positive indicators were visible.

He said that Indonesian citizens who left Indonesia after the riots in 1998 continued to return home.

"I am sure many of them have come back here. The question now is when their funds, having been parked overseas all this time, will be transferred back here to invest and start business again." (udi)