Singapore partners split on Ciputra mall

Singapore partners split on Ciputra mall

SINGAPORE (Reuters): Singapore partners in a US$488 million
shopping and hotel development with Indonesia's PT Ciputra
Development are split over carrying on with the project.

"We have pulled out already," a spokeswoman for Singapore's
insurance company NTUC Income told Reuters.

But Natsteel will stay involved in the Jakarta development,
said company spokesman Lim Beng See.

He said the project had been halted but there were no plans to
pull out.

"We will continue participation in the project," he said.

The Indonesian property developer said on Thursday it was not
able to pay $250 million in debt due to the rupiah's fall by some
75 percent against the dollar since July.

"If the depreciation had been just 10 percent, our project
would have been feasible, but in fact the depreciation was
hundreds of percent, so we are not able to pay the debt," Ciputra
President Director Harun Hajadi was quoted by Bisnis Indonesia as
saying.

Natsteel, through its Natsteel Properties unit, holds a 10
percent stake, while NTUC Income also holds 10 percent.

The third Singapore partner, government-owned Pidemco, which
has a 5 percent stake, said it had yet to decide on its
participation.

"Our exposure for this project has been minimal," a company
spokeswoman said.

PT Ciputra holds a 55 percent share in the venture.