Sinar Mas firms rule out dividends

Sinar Mas firms rule out dividends

JAKARTA (JP): Shareholders of PT Indah Kiat Pulp & Paper
Corp., PT Pabrik Kertas Tjiwi Kimia and PT SMART Corp. have
agreed to not provide a dividend for the 1997 calender year due
to the economic crisis, according to press statements from the
companies.

The three listed companies are controlled by the Sinar Mas
Group, the country's second largest conglomerate.

Indonesia's giant pulp and paper operation, Indah Kiat, said
its Rp 392 billion (US$26.49 million) 1997 net profit would be
used as working capital since outside financing had been
difficult to obtain during the crisis.

Paper manufacturer Tjiwi Kimia said its Rp 348.42 billion 1997
net profit would be used to finance debt payments, import raw
materials and be retained as capital.

"The import of raw materials can't all be financed through
letters of credit. We must also pay in cash," the company said in
a statement.

Integrated palm-based consumer products maker SMART said it
had decided not to pay a dividend since it had suffered foreign
exchange losses and saw a poor performance from its drink
manufacturer subsidiary.

SMART booked a Rp 160 billion interest and foreign exchange
loss resulting from a US$150 million swap contract signed in July
to hedge its U.S. dollar loans.

The company did not disclose its total dollar debts.

It also said that its PT Navika drink maker suffered a Rp 87.7
billion loss last year.

It added that Navika had been sold in December to reduce
losses.

SMART reported a gross profit of Rp 180.72 billion, which was
more than a 62 percent increase from 1996. (rei)