Local shipowners oppose Hutchison's takeover plans

JAKARTA (JP): The Indonesian Shipowners Association (INSA) has strongly opposed plans by Hongkong's Hutchison Port Holdings to purchase a 48 percent interest in PT Humpuss Terminal Petikemas (HTP), an operator of a container terminal at Jakarta's Port, Tanjung Priok.

INSA secretary general Barens Th Saragih said on Friday that the foreign port operator would monopolize services at Tanjung Priok, Indonesia's largest and busiest seaport, if its investment plan was realized.

"If the sale is realized, the Hutchison group will become a monopoly," he was quoted by Antara as saying.

Barens pointed out that Grosbeaks Pte. Ltd., a unit of Hutchison Whampoa, already controlled 51 percent of PT Jakarta International Container Terminal (JICT), which operates two container terminals at Tanjung Priok.

JICT is a unit of the state-owned PT Pelindo II, which was privatized by the government last year.

Barens also said that the entry of the Hongkong port operator into the Jakarta seaport would not ensure a better service.

He said that there were many complaints of poor service at JICT after Hutchison took over as operator.

Hutchison Port Holdings is a publicly listed company in Hongkong which operates 17 container terminals around the world.

The Hutchison investment plan became controversial, after the press alleged that Inghie Kwik, the son of the Coordinating Minister for Economy, Finance and Industry Kwik Kian Gie, was acting as a broker in the sale of HTP to Hutchison.

This is controversial not only because Inghie is the son of Indonesia's senior economics minister, but also because HTP is among the thousands of debtor companies under the Indonesian Bank Restructuring Agency (IBRA).

HTP is a unit of the publicly listed PT Humpuss Intermoda Transportasi, which is controlled by Hutomo Mandala Putra, the youngest son of former president Soeharto.

State Minister of Investment and State Enterprises Development Laksamana Sukardi said that only IBRA has the right to sell HTP.

Laksamana is Kwik Kian Gie's colleague in the Indonesian Democratic Party of Struggle, the country's largest political party.

But Inghie denied allegations that his company called Asset Management Group of Indonesia was acting as broker. He said that the firm was merely acting as consultant to Hutchison.

He also said that HTP was not under the control of IBRA, but was indebted to a bank taken over by IBRA. He said that IBRA was only acting as a creditor not the owner of HTP.

The agency has taken over some Rp 230 trillion (US$31 billion) worth of non-performing bank loans since 1998 in a bid to restructure the ailing banking industry.

"So the rights to sell HTP remains in the hands of the majority owner Humpuss Transportasi Intermoda and other minority shareholders," Inghie said. (rei)