Probo approaches Dayak Besar deal with caution

Probo approaches Dayak Besar deal with caution

JAKARTA (JP): Businessman Probosutedjo, a half brother of
President Soeharto, expressed caution yesterday about his plan to
take over the debt-ridden Dayak Besar Group, a group of timber
companies.

"We are still studying how to repay the large amount of debts
owed by Dayak Besar," Probosutedjo said after meeting with
Minister of Forestry Djamaludin Suryohadikusumo at the latter's
office yesterday to discuss the planned takeover.

He said, however, that he will not retreat from the takeover
because "my mission is to rescue the government's money from the
troubled group."

Dayak Besar, which is partially controlled by businessman
Yusuf Hamka, is reportedly Rp 350 (US$158 million) in arrears to
the state-owned Bank Rakyat Indonesia and a group of private
banks.

According to Djamaludin, Dayak Besar also owes the government
a large sum of money, including unpaid reforestation funds.

According to the valuation by PT Maharani Dharma Sakti, an
appraisal company owned by the Dharmala Group, the assets of the
timber group, excluding logging equipment, are valued at about Rp
240 billion.

Probosutedjo reiterated that the process of the takeover is
not been final, saying that it will take his party about two
months to study the group.

"I have never had such a debt in my life. The total debts of
my companies do not exceed Rp 20 billion. And now, I will be
burdened with such a lot of debts that I have to think it over
again," said Probosutedjo, chairman of the well-diversified Mercu
Buana Group.

Solichin G.P., the chief commissioner of the troubled
Dayak Besar and a member of a special team set up by the
government to rescue the group, said late last month that it was
certain that Probosutedjo would take over the group. He added
that the memorandum of understanding would be signed within a
week.

Sanction

The Dayak Besar Group case exploded early last month when
Minister Djamaludin threatened to impose "harsh sanctions" on the
group for violating forestry regulations.

Djamaludin then issued orders forbidding two of the group's
subsidiaries, PT Dayak Besar Vincent Timber Co. and PT Gelora
Dayak Besar, from transporting their logs and sawn timber from
their forest concessions in East Kalimantan. The two companies
alone control close to 200,000 hectares of forest concessions.

The group reportedly dismissed its 2,400 workers without prior
warning last month.

"I don't want to see such a lot of people suddenly become
unemployed," Probosutedjo said. "That's why I don't want to
retreat from the takeover plan."

When asked if he could manage a timber business, Probosutedjo
said: "It's not a big problem. I'm sure I can handle it."

Djamaludin said that if it is needed, he is ready to supply
forestry professionals from state-owned forestry companies to
help Probosutedjo manage Dayak Besar.

"No problem at all with forestry professionals. Our main
concern is that we can rescue the government's money from the
troubled timber group," Djamaludin said after a ceremony to
install three new director generals.

In yesterday's ceremony, Djamaludin installed Titus Sarijanto
as director general of forest development, replacing Hendarsun
Surya Sanusiputra who was transferred into his new position as
director general of reforestation and land rehabilitation. He
also installed former director general of reforestation and land
rehabilitation Sumahadi as director general of forest inventory
and land use planning, replacing Titus Sarijanto. (rid)