Kotjo helps save debt-ridden Kanindo

JAKARTA (JP): Johannes Kotjo, a former executive of the Salim Group, is reportedly helping revive debt-ridden PT Kanindo Success Textile, a textile manufacturer in Bawen, Central Java.

Legislator A. Baramuli, who successfully uncovered Eddy Tansil's huge bad debt at Bapindo, said Kotjo has provided Rp 800 million (US$370,000) in cash per day for the factory's operation since the beginning of this month.

Baramuli said the owner of the company, Robby Tjahjadi, had chosen Kotjo because Robby did not want his company to get taken over by the government since it would lower the resale value of his factory.

Minister of Industry Tunky Ariwibowo, however, had stated earlier that the government will not allow state-owned companies to be involved in the takeover.

Meanwhile the Association of Indonesian Batik Cooperatives (GKBI) and the Texmaco Group have expressed their interest in acquiring the debt-ridden textile manufacturer.

Director General of Urban Cooperatives at the Ministry of Cooperatives and Small Enterprises Mamiet Maryono told journalists on Tuesday that GKBI is ready to buy 51 percent of the shares.

Kanindo Success Textile, a subsidiary of the Kanindo Group, is reportedly some Rp 500 billion in debt -- others put it at Rp 800 billion.

Robby has faced a liquidity problem since the debt problem of his textile factory surfaced earlier this year. Since then Robby has had to pay cash in order to buy raw materials.

Baramuli denied reports that Robby has run away to avoid his bad debt. "He went abroad not to run away, but to check his health as he suffers from heart trouble," he was quoted by the Republika daily yesterday as saying. (rid)