RI's Bukaka sees sales boost

RI's Bukaka sees sales boost

MELBOURNE (Reuter): Indonesia's Bukaka group could lift annual sales by US$100 million to $200 million as a result of Indonesia's planned $50 billion of infrastructure spending, chairman Fadel Muhammad said here yesterday.

He said the group, which includes the listed engineering company PT Bukaka Teknik Utama and privately-held interests, currently had annual sales of about $200 million.

Muhammad told reporters that companies like Bukaka were expected to account for about $2 billion of the $17 billion of spending on transport infrastructure under the country's five- year plan.

He said Indonesian/foreign joint ventures would provide the balance. Total spending on all infrastructure projects under the sixth five-year plan is $50 billion.

"If you look at the whole group that I am involved in, maybe we can plan for $300 million to $400 million (of extra revenue) maximum that we can absorb," he said after a trade and investment conference. But he added that the group may need a foreign partner in some of these new projects.

PT Bukaka Teknik, which listed its shares in January, is in a consortium which will install telephone lines in eastern Indonesia and is also involved power projects in other parts of the country.