Pupuk Sriwijaya seeks investor

JAKARTA (JP): State-owned fertilizer producer PT Pupuk Sriwijaya announced on Thursday that it would go ahead with plans to build the so-called Kujang 1B project worth US$350 million.

Company Chairman Zaenal Soedjais said negotiations with potential local and foreign investors were still underway, though.

"I am optimistic that this multi-million project will go ahead and the negotiations will be completed by the end of the year," he told The Jakarta Post on Tuesday before delivering a speech at the 2001 Indonesia International Chemical Exhibition and Conference.

Zaenal explained that the company was currently finalizing a deal with a Japan-based investor willing to provide $150 million in return for a stake in the project.

"Generally, we have agreed on the terms of conditions. But there are still some technical matters to be discussed," he added. He refused to name the company.

As for the other $200 million, Zaenal preferred that it came from local investors.(10)