Govt reaffirms refusal for firm to go public
Govt reaffirms refusal for firm to go public
JAKARTA (JP): The Ministry of Forestry has reaffirmed its
preliminary decision that prohibits PT Artika Optima Inti (AOI),
a subsidiary of the Djajanti Group, to list its shares on the
stock exchange.
The head of the ministry's public relations office, Kardjono
Kadarsin, issued that statement yesterday in response to an
article in the Singapore-based Business Times daily (April 30-May
1.)
This article quoted PT Peregrine Sewu Securities, the lead
underwriter for the planned share issuance, as saying that AOI
would go ahead with its planned public share offering this month.
Kardjono said the ministry did not give its recommendation to
AOI because it had bought illegally-cut timber and been fined Rp
1.6 billion (US$747,663) for that violation. He expressed his
doubts about whether the public would be willing to buy shares
from a company that obtained its raw materials illegally.
He also said that AOI's request had been turned down because
the company is still is having problems constructing their
industrial estate and obtaining raw materials for its wood
processing unit.
Kardjono said that Minister of Forestry, Djamaloedin
Soeryohadikoesoemo, is working through the director general of
forest management to make sure that the ministry's local offices
in Maluku and East Java check the origins of the logs delivered
to AOI's and PT Nusantara Plywood's wood processing units.
The minister will also ask Nusantara Plywood and AOI to
immediately report suppliers of logs which are not affiliated
with the group.
Nusantara Plywood is also a subsidiary of the Djajanti Group.
Reports
The minister has requested full reports from all the groups of
forest concessionaires whose industrial capacity is much larger
than what they are allowed to cut annually.
To solve this problem as soon as possible, the ministry of forestry
will send an audit team to AOI.
The Corporate Finance Executive of Peregrine Imamat Dalimunthe
was quoted by the Business Times as saying that he had received
instructions from an AOI director to continue taking the
necessary steps to prepare AOI's listing. This includes keeping
up with the necessary paperwork and holding regular meetings with
officials of the Capital Market Supervisory Board (Bapepam).
Senior AOI and Peregrine executives, who are currently
overseas to promote the public offering, are scheduled to meet
with Minister of Forestry Djamaloedin Soeryohadikoesoemo this
weekend.
Although one industry observer has said that AOI's operations
aren't so bad -- and were actually similar to those of PT
Sumalindo and PT Barito Pacific which had gone public -- a forest
consultant told the Jakarta Post that AOI's forest concessions
are in poor condition.
The company plans to raise between Rp 400 billion to Rp 500 billion
from the share offerings scheduled for May 18 to May 20. The shares
will be listed on the Jakarta Stock Exchange and Surabaya Stock
Exchange on June 22. (10)
JAKARTA (JP): The Ministry of Forestry has reaffirmed its
preliminary decision that prohibits PT Artika Optima Inti (AOI),
a subsidiary of the Djajanti Group, to list its shares on the
stock exchange.
The head of the ministry's public relations office, Kardjono
Kadarsin, issued that statement yesterday in response to an
article in the Singapore-based Business Times daily (April 30-May
1.)
This article quoted PT Peregrine Sewu Securities, the lead
underwriter for the planned share issuance, as saying that AOI
would go ahead with its planned public share offering this month.
Kardjono said the ministry did not give its recommendation to
AOI because it had bought illegally-cut timber and been fined Rp
1.6 billion (US$747,663) for that violation. He expressed his
doubts about whether the public would be willing to buy shares
from a company that obtained its raw materials illegally.
He also said that AOI's request had been turned down because
the company is still is having problems constructing their
industrial estate and obtaining raw materials for its wood
processing unit.
Kardjono said that Minister of Forestry, Djamaloedin
Soeryohadikoesoemo, is working through the director general of
forest management to make sure that the ministry's local offices
in Maluku and East Java check the origins of the logs delivered
to AOI's and PT Nusantara Plywood's wood processing units.
The minister will also ask Nusantara Plywood and AOI to
immediately report suppliers of logs which are not affiliated
with the group.
Nusantara Plywood is also a subsidiary of the Djajanti Group.
Reports
The minister has requested full reports from all the groups of
forest concessionaires whose industrial capacity is much larger
than what they are allowed to cut annually.
To solve this problem as soon as possible, the ministry of forestry
will send an audit team to AOI.
The Corporate Finance Executive of Peregrine Imamat Dalimunthe
was quoted by the Business Times as saying that he had received
instructions from an AOI director to continue taking the
necessary steps to prepare AOI's listing. This includes keeping
up with the necessary paperwork and holding regular meetings with
officials of the Capital Market Supervisory Board (Bapepam).
Senior AOI and Peregrine executives, who are currently
overseas to promote the public offering, are scheduled to meet
with Minister of Forestry Djamaloedin Soeryohadikoesoemo this
weekend.
Although one industry observer has said that AOI's operations
aren't so bad -- and were actually similar to those of PT
Sumalindo and PT Barito Pacific which had gone public -- a forest
consultant told the Jakarta Post that AOI's forest concessions
are in poor condition.
The company plans to raise between Rp 400 billion to Rp 500 billion
from the share offerings scheduled for May 18 to May 20. The shares
will be listed on the Jakarta Stock Exchange and Surabaya Stock
Exchange on June 22. (10)