JSP not to pay dividends for 1998

JAKARTA (JP): Publicly listed PT Jakarta Setiabudi Property (JSP), which suffered a net loss of Rp 196.6 billion last year, will not pay dividends for 1998, a company executive has said.

JSP vice president director Purwo Hari Prawiro said on Friday that the company booked higher revenues last year, but fell into the red as the result of high spending on interest payments and foreign exchange losses.

The company recorded a 74.6 percent increase in revenues to reach Rp 385.4 billion (US$4.5 million) in 1998, up from Rp 220.7 billion in 1997, he said.

"But JSP still suffered a net loss of Rp 196.6 billion last year," Purwo said after the company's annual meeting of shareholders.

The company remained in the red in the first quarter of this year, with a net loss amounting to Rp 89.3 billion, he added.

Purwo said that foreign loans remained a major headache for the company. The property company owes $40 million to Bank of Tokyo Mitsubishi and a further $22 million to a consortium of local banks led by Bank Bali.

He said JSP was expecting a debt rescheduling proposal to be approved by creditors sometime this year.

"JSP has asked Bank of Tokyo Mitsubishi and a consortium of local banks led by Bank Bali to defer debt repayments for five years. However, the debt rescheduling proposal has yet to be approved due to a number of outstanding problems," Purwo said.

He said Bank Bali and a consortium of four local banks -- Bank Panin, Bank International Indonesia, Bank Universal and the now liquidated Bank Umum Nasional -- had agreed in principle to reschedule $22 million in outstanding debts.

"But it has not been given final approval because the Indonesian Bank Restructuring Agency (IBRA), which now controls Bank Umum Nasional's assets, has not yet decided what to do with the loan," he said.

Bank of Tokyo Mitsubishi is expected to decide on the matter after the general election in June, he added.

JSP owns several office buildings and apartments in Jakarta, including Kuningan and Setiabudi apartments. The company also owns a number of hotels in Bali, including the Bali Hyatt, Parkroyal Sanur, Galeria Nusa Dua and Grand Hyatt Nusa Dua.

PT Jan Darmadi Corporation holds an 87.28 percent stake in the company, members of the general public hold 9.33 percent, Jan Darmadi holds 2.39 percent, with cooperatives possessing the remaining 1 percent. (cst)