JF Indonesia Fund to hold restructuring

JF Indonesia Fund to hold restructuring

HONG KONG (Dow Jones): JF Indonesia Fund Inc., a Cayman
Islands-based closed ended investment company, is proposing a
restructuring that will give investors the opportunity to convert
all or part of their holdings into JF ASEAN Trust, an open ended
fund investing in Southeast Asia, the company said in a legal
announcement Monday.

Alternatively, investors can elect to receive units in the JF
Money. Since this is a readily realizable non-equity investment,
shareholders may immediately redeem these units for cash. All
three funds are managed by unlisted Jardine Fleming Unit Trusts
Ltd.

Given the economic and political situation in Indonesia, the
illiquidity of the company's shares and the small size of its
asset base, the board of directors considers it to be in the
shareholders' best interest to reconstruct the company. Since the
Asian crisis began in 1997 the company's shares have traded at "a
significant discount to their underlying net asset value," the
board said.

While the reconstruction will allow investors who wish to pull
out altogether to do so, the option to transfer the holdings into
JF ASEAN Trust will enable investors who wish to stay invested in
the region to do that, albeit with a reduced exposure to
Indonesia, the company said.

As of May 30, the JF ASEAN Trust portfolio had a net asset
value of US$103.6 million, while the net asset value of the JF
Money Fund was US$388.5 million.

The proposals will need approval by shareholders at an extra
general meeting to be held June 30.

The company will request that shares in JF Indonesia Fund be
suspended from trading on the Stock Exchange of Hong Kong from
the close of trading July 4.