Kotjo helps save debt-ridden Kanindo

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)