Indorayon to pass govt audit

Indorayon to pass govt audit

SINGAPORE (Dow Jones): Indonesian rayon and pulp maker PT Inti Indorayon Utama is likely to pass an environmental audit ordered by the Indonesian government, said Singapore-based Asia Pacific Resources International Holdings Ltd., or the April Group.

"We think the audit will be quite positive in most aspects," said Mark Blackburn, April's chief financial officer, in the company's quarterly conference call late Thursday.

April announced last week it would spin off its 62 percent stake in Indorayon, and that Indonesia-based PT Raja Garuda Mas will replace April as Indorayon's majority shareholder.

PT Raja Garuda Mas owns the April Group.

Indorayon's Porsea mill in North Sumatra was reopened last month after being forced to shut down for more than three months. Locals in the Porsea area have staged violent demonstrations at various times, accusing Indorayon of causing environmental damage.

Indorayon said the shutdown cost nearly US$20 million a month in lost revenues.