Pelindo III to four sell subsidiaries next year

Pelindo III to four sell subsidiaries next year

Rendi A. Witular, The Jakarta Post, Jakarta

State-owned seaport operator PT Pelabuhan Indonesia III
(Pelindo III) plans to sell three of its subsidiaries next year
as part of efforts to raise cash to help finance the expansion of
its ports, a senior official said.

Pelindo III president Bambang Darwoto said recently that the
divestment program would also include a further sale of stakes in
container terminal operator PT Terminal Petikemas Surabaya (TPS).

"We are planning to sell three of our subsidiaries next year
and continue the divestment of TPS. This decision was made so
that we can finance the expansion of our ports facilities," said
Bambang.

The ports are located on several islands throughout the
country.

He said the three subsidiaries ready for sale were stevedoring
service company PT Berlian Jasa Terminal Indonesia, maintenance
company PT Portek Indonesia and hospital PT Rumah Sakit Pelabuhan
Surabaya (RSPS).

Of the three companies, Berlian is scheduled to be divested
first in the early part of next year via a private placement
scheme, he said.

Bambang said that Pelindo III would also apply the same scheme
to divest RSPS in mid 2004. As for Portek, the company was
considering an initial public offering scheme later at the end of
2004.

Bambang, however, refused to disclose the expected proceeds
from the divestment program, but a source at Pelindo III said
that the company was expected to rake in more than Rp 300 billion
(US$35 million) in cash.

Regarding the further sale of a stake in TPS, Bambang said
that the company was still discussing the matter with the State
Ministry of the State Enterprises on the amount of shares to be
sold and the selling method.

"We are still discussing the amount of shares to be sold. The
result is expected to come out early next year," he said.

Pelindo III still owns 51 percent of the shares in TPS, after
it sold 49 percent of its stake to P&O Ports, a division of P&O
Australia Ltd., for $173 million back in 1999.

TPS is located in Indonesia's second largest port Tanjung
Perak Port, in Surabaya. The terminal has a capacity of over 2
million twelve-foot equivalent units (TEUs).

Elsewhere, Bambang also said that Pelindo III was considering
an issue of bonds after the general election next year to help
support the expansion program. However, he refused to hint at the
amount of bonds to be issued.

Pelindo III, which is headquartered in Indonesia's second
largest city Surabaya and operates 37 seaports, including those
in Central Java, East Java, Bali, West Nusa Tenggara, East Nusa
Tenggara, South Kalimantan and Central Kalimantan.

Pelindo III has projected its net profit for 2003 to decline
by 14 percent on lower trading activities and higher operational
costs. The company projects a profit of Rp 307 billion, down from
Rp 358 billion last year.

Revenue from operations is expected to drop by 40 percent to
Rp 809 billion from Rp 1.35 trillion last year.