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.