Soeharto firm on share holdings

JAKARTA (JP): President Soeharto reaffirmed his stance yesterday against publicly-listed companies being controlled by an individual investor or a few business groups.

Minister of Cooperatives Subiakto Tjakrawerdaya quoted Soeharto as saying that private companies had been encouraged to go public to make ownership of assets more equitable.

"The President therefore will not allow an individual or a few groups to acquire controlling ownerships of companies already listed on the stock exchanges," Subiakto told reporters after meeting the President.

"Make your own inference," Subiakto told a reporter who asked whether the President's directive was made in relation to a conglomerate's attempt to acquire a controlling stake in PT Astra International last month.

President Soeharto said it might be necessary to limit an individual's or a group's ownership of a publicly-listed company to 15 percent.

Putra Sampoerna, the chairman of the Sampoerna cigarette group, moved last month to acquire more than 25 percent of Astra International, the country's largest automobile group.

But his takeover was foiled by several investors, including three foundations controlled by Soeharto, who bought many Astra shares.

Sampoerna's share holding fell to around 15 percent after PT Nusamba, the three foundations' holding company, acquired 10.68 percent, the Salim group increased its stake to 7.37 percent from 4.57 percent and the Danamon group raised its stake to 7.33 percent from 2.06 percent. (vin)