Sinar Mas unit to form CDT business

Sinar Mas unit to form CDT business

JAKARTA (JP): Integrated logistics companies PT Bina Sinar
Amity and PT Bina Sinar Utama plan to establish the country's
first customs distribution terminal in the Cakung area of North
Jakarta next year, a company official has announced.

The director of both companies, Jo Liat Tjiang, said on Monday
that the terminal, also called a bonded warehouse, would help
importers and exporters to improve the efficiency of their
logistical operation.

"The concept still needs finalizing, but we plan to realize it
by next year," he said.

Tjiang added that Indonesia offers opportunities for opening
the distribution terminal as the country's manufacturing sector
imports up to 80 percent of its raw materials.

The two companies are jointly owned by the Sinar Mas Group,
Japan's Nisho Iwai, Sankyu and Itochu, and Taiwan's Amity Group.

Bina Sinar Amity operates a container yard, warehouse facility
and container depot, while Bina Sinar Utama provides customs
clearance services, freight and forwarding, transportation and
container repair service.

The two companies recently received the ISO 9002 management
system certification from the Netherlands' KEMA Registered
Quality.

Tjiang said the two companies enjoyed a combined turnover of
Rp 70 billion last year, and were expected to grow by 20 percent
this year.

He also said the companies planned to go public next year if
the country's economic condition improved.

"If Indonesia's economic condition improves next year, we will
launch an initial public offering (IPO)," he said, adding that
the company aimed at becoming the market leader in 2002.

Tjiang declined to provide details.(rei)