State agency may intervene in debt-ridden Dayak Besar
State agency may intervene in debt-ridden Dayak Besar
JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
affirmed yesterday that PT Dayak Besar Group's debt-burdened
timber companies must settle their debts themselves if no new
investor is interested in taking over those firms.
Djamaludin said the Dayak Besar Group (DBG) must pay its
debts, both to the government and to state-owned Bank Rakyat
Indonesia (BRI), even if it means the government must use the
State Receivership Agency for Debts and Auction to get back the
unpaid loans.
"I doubt whether there will be any investors interested in
taking over the company, so it is more likely that the company
must settle its obligations on its own," he told reporters
yesterday.
DBG, which was partially controlled by businessman Yusuf
Hamka, was reported last April to have defaulted on its debts of
about Rp 350 billion (US$152.17 million). The company owes Rp 200
billion to BRI and the remaining Rp 150 billion is owed to a
number of private banks.
DBG, which controls forest concessions of almost 200,000
hectares and a number of timber mills in East Kalimantan, was
also said to owe a large sum of money -- including unpaid
reforestation funds and forest royalties -- to the government.
About a month after the case was disclosed, businessman and
half-brother of President Soeharto, Probosutedjo, stepped in and
agreed to takeover the company's debts.
Last week, however, Probosutedjo decided to back out of the
deal, saying the debts were too much for him to handle and that
he was unable to meet the terms set by BRI.
Djamaludin said yesterday DBG's forest were in a very poor
condition and only 10,000 to 15,000 hectares of the company's
total concessions could be classified as virgin forests.
"Even if a new investor tried to mend DBG's damaged forests
and settle its loans, it might take more than 20 years," he said.
The government reviews forest concessions on a 20-year basis.
According to the Ministry of Forestry, DBG's concession ended
in 1992, but the ministry issued a temporary extension under the
condition that DBG establish a joint venture with a state-owned
forestry firm.
However, DBG was later accused of backing out of the deal
unilaterally when it closed down its office. Afterwards, DBG's
concession was no longer extended. (pwn)