Govt to keep grip on Kanindotex

Govt to keep grip on Kanindotex

JAKARTA (JP): Minister of Finance Mar'ie Muhammad said yesterday that the government will maintain management control of the troubled textile mill PT Kanindotex through the Federation of Indonesian Batik Cooperatives.

"The government will maintain the management contract (of Kanindotex) with the federation which has been running the firm since last September," he said as quoted by Antara.

The government last year assigned the federation to take over the management of the textile firm after a parliamentary investigation revealed that Kanindotex failed to honor its debts of approximately Rp 500 billion (US$232 million) to two state banks, Bank Bumi Daya and Bank Pembangunan Indonesia (Bapindo).

The Republika daily quoted yesterday a source at Bank Bumi Daya which said that Robby Tjahjadi, the former owner of Kanindotex, once convicted of car smuggler, had teamed up with Bambang Trihatmodjo, the son of President Soeharto controlling the Bimantara Group, and Johannes Kotjo, a former Salim Group executive, to regain control of the textile mill.

Mar'ie declined to comment further on the issue. He told the press: "You contact both Bank Bumi Daya and Bapindo because they are the ones who warranted the credits for Kanindotex."

Noorbasha Djunaid, chairman of the federation's team which now runs Kanindotex, said earlier this month that the company remains financially weak, even though the last four months has seen a substantial increase in sales.

Kanindotex's outstanding debts to the two state banks have grown to more than Rp 936 billion, excluding about Rp 70 billion in new debts incurred by the new management in a desperate life- saving bid in the early stages of the rescue program, Noorbasha said.

A member of the House of the Representatives said yesterday that all moves which will allow Robby Tjahjadi to reacquire his firm will be "deplored".

"Our work will be in vain if Robby can re-establish control in Kanindotex," said Urai Faisal Hamid of the United Development Party's faction in the house.

Bambang Warih Koesoema, the Golkar legislator who initially exposed Kanindotex's bad debts, is likely to loose his job soon for his actions, which supposedly deviated from the ruling party's line.

Bambang Trihatmodjo and Johannes Kotjo acquired Kanindotex's listed subsidiary PT Mayatexdian last month through a direct- placement transaction estimated at between $26 million and $32.52 million. (hdj))