PT. Rekayasa ties up with three state firms

PT. Rekayasa ties up with three state firms

JAKARTA (JP): PT Rekayasa Industri forged alliances yesterday
with three other state enterprises to raise its industrial-
engineering and construction expertise.

Rekayasa Industri president Hari G. Soeparto said yesterday
the alliances were expected to make the company better at
designing and building cement and petrochemical plants.

"This will also help Rekayasa Industri prepare for greater
competition from domestic and foreign competitors," Hari told an
audience at the signing of agreements between Rekayasa Industri
and cement firm PT Semen Gresik, fertilizer maker PT Pupuk
Sriwijaya and petrochemical firm PT Petrokimia Gresik.

The three agreements were signed by Hari and Semen Gresik
president Urip Timuryono, a Pupuk Sriwijaya executive, Nanang
Sutadji, and Petrokimia Gresik president Rauf Purnama.

The director general of Metal, Machinery and Chemical
Industries, Effendi Sudarsono, who witnessed the ceremony, said
that under the alliance petrochemical and cement industries would
no longer have to make special investments in industrial
engineering and construction.

"Factory engineering makes up from 5 percent to 10 percent of
total investment costs... These alliances will hopefully enable
the companies to focus on their main business of manufacturing,"
Effendi said.

He said Rekayasa Industri's alliances with the petrochemical
and cement firms would, in the long run, save the costs of
foreign goods and services.

"The petrochemical and cement industries give huge multiplier
effects... Hopefully the sophisticated facilities owned (by Semen
Gresik, Petrokimia Gresik and Pupuk Sriwijaya) can be optimally
used and improved by Rekayasa Industri," Effendi said.

Hari said about 60 percent of Rekayasa Industri's clients in
1995 were private firms and this rose to 80 percent last year.

Rekayasa Industri's total projects last year were worth
between Rp 60 billion (US$26.1 million) and Rp 70 billion. (pwn)