Indofood generates $500m from offshore capital market

Indofood generates $500m from offshore capital market

JAKARTA (JP): PT Indofood Sukses Makmur, the food division of the Salim conglomerate, has generated US$500 million by selling 20 percent of its shares on the Luxembourg stock market, says State Minister of Investment Sanyoto Sastrowardoyo.

"Three more Indonesian companies will soon offer their shares on international capital markets," he told reporters after meeting with President Soeharto at the Bina Graha office here yesterday.

The minister did not disclose the names of those companies or the designated capital markets.

Sanyoto, who is also chairman of the Investment Coordinating Board (BKPM), said that by floating shares on offshore capital markets, the companies can inject fresh funds into the country.

"Money is coming in, not going out," Sanyoto maintained.

The minister insisted that the Salim Group, the biggest conglomerate in the country, intends to use the $500 million to finance expansion programs within Indonesia.

"Everything is for Indonesia," Sanyoto confirmed.

Salim Group's PT Indocement Tunggal Prakarsa, the country's largest cement producer, acquired a 51-percent stake in Indofood, its sister company, in 1992 through a controversial US$1.03 billion acquisition.

Sanyoto also stated yesterday that approved domestic investments in the first three months of this year reached Rp 16.7 trillion (US$795 million) for 207 projects.

Foreign investments approved over the same period totaled $2.93 billion for 80 projects. (04)