Measures sought to revive debt-ridden PT Kanindo

Measures sought to revive debt-ridden PT Kanindo

JAKARTA (JP): Minister of Finance Mar'ie Muhammad acknowledged
yesterday that PT Kanindo Success Textile, a textile
manufacturer, is facing financial problems and that the
government is seeking measures to save its operations.

"I cannot make any comment on the measures to be taken to save
the textile company because they are now still being investigated
by the Ministry of Finance and the Ministry of Industry," he told
reporters after meeting with delegates of the Islamic Development
Bank (IDB) here yesterday.

Minister of Industry Tunky Ariwibowo also declined to give any
comment last week.

"We have actually found out that the company is now embroiled
in a financial debacle but we are now studying all the reasons of
its bad debts," Tunky was quoted by Bisnis Indonesia yesterday.

Kanindo Success Textile, a subsidiary of the Kanindo Group
owned by Robby Tjahjadi, is reportedly in the process of being
acquired by the Texmaco Group and the Association of Indonesian
Batik Cooperatives (GKBI).

Mar'ie said Kanindo's should be secured because it employs a
large number of people and part of its products is exported to
earn foreign exchange.

A report said that the Kanindo Group's debts reached over Rp
500 billion (US$230.30 million).

"But in spite of the planned efforts to revive the textile
firm, the government will not allow any state companies to be
involved in its takeover," Tunky said.

"State companies have their own jobs, which does not include
taking over private businesses. Let private companies solve their
own problems under the government's auspices," he said. (fhp)