Patra Jasa gears up for IPO

The Jakarta Post, Jakarta

Hotel and property company PT Patra Jasa is consolidating its business to help boost performance ahead a planned initial public offering (IPO) in 2006.

"We have been restructuring and optimizing our business for the last two years in a bid to make the company a public company," company president Tony Prabowo told a media briefing on Thursday.

Tony said that Patra Jasa, which is a subsidiary of state oil and gas company Pertamina, had been engaged in a restructuring process since last year by developing and diversifying its business units.

He added that three years would give enough time for the company to consolidate its financial performance before launching the IPO.

"Although the company never suffers a loss, our financial ability has yet to support our business expansion," Tony said.

In addition, the stock market authority rules out that a company must not book losses in three consecutive years before an IPO.

Tristyanto W.M, Patra Jasa finance director said that before the Bali bombing in 2002 and the outbreak of Severe Acute Respiratory Syndrome (SARS), the company was targeting a 5 percent to 10 percent increase in net profit.

However, the company has revised downward its profit projection this year.

"The impact of SARS is significant for us," he said, declining to give details on the revision.

Last year the company made a profit of Rp 110 billion (US$13.41 million).

According to Tony, the restructuring plan includes improving the condition of its seven hotels in a bid to compete with other international players in the hospitality industry.

Patra Jasa plans to reopen its international hotel in Bali, called Patra Bali, in September after undergoing a renovation program worth Rp 170 billion.