Three units of Salim Group to go public through IPOs

Three units of Salim Group to go public through IPOs

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
plans to sell three companies of the Salim Group through initial
public offerings (IPOs) before the end of the year, according to
an official at the agency.

The head of IBRA's asset management and investment division,
Tom Lembong, said on Tuesday the three IPO candidates were TV
broadcasting firm PT Indosiar Visual Mandiri, retail chain
operator PT Indomarco Prismatama and galvanized iron sheet
manufacturer PT Kerismas Witikco Makmur.

"But the plan is subject to the approval of the Financial
Sector Policy Committee (FSPC)," Tom said following a meeting
with members of the committee.

The FSPC oversees the country's bank and corporate
restructuring program.

Tom said the three companies were, for the most part, ready to
go public this year. He added that IBRA already had named PT
Trimegah Securities as the lead underwriter for Indosiar's IPO.

Tom also said IBRA would sell consumer goods firm PT Pangan
Sari, which had been controlled by businessman Mohamad "Bob"
Hasan, to a strategic investor this year.

He said there were already four bidders for Pangan Sari,
including three from overseas.

The Salim Group transferred ownership of more than 100 of its
companies to IBRA to settle the obligations of its Bank Central
Asia (BCA) to the government. Bob Hasan also transferred the
ownership of several of his companies to settle the debts of his
now defunct Bank Umum Nasional.

IBRA currently controls between 50 percent and 100 percent
ownership in these companies.

The agency is mandated to sell the assets under its control
to raise cash to help finance the state budget. The goal for the
current April-December 2000 State Budget is to raise some Rp 18.9
trillion (US$2.27 billion) in cash, of which the agency has so
far raised more than Rp 11 trillion.

If the FSPC approves the IPO plans, they would be the first of
the current budget year. IBRA held an IPO for BCA earlier this
year to raise revenue for the previous state budget. The agency
is planning a second floating of BCA shares later this year to
raise an additional Rp 1.5 trillion.

Indosiar is the newest TV station in Indonesia, beginning its
operations in 1995. According to a booklet produced by IBRA,
Indosiar has "captured the hearts" of Indonesian viewers,
becoming the country's second-most watched station after RCTI. It
went on to say advertisers were eager to purchase time on
Indosiar.

The broadcasting firm also has put itself in a superior
technical position since its inception by building the most
powerful broadcasting station and relay stations in the country,
according to the booklet. Through its headquarters in Jakarta and
its 16 transmission relay stations, Indosiar broadcasts can be
received in 106 cities in almost every provinces of Indonesia.

IBRA's booklet went on to describe Indosiar as the first
digital television station in Southeast Asia, equipped with the
latest technology. The broadcasting firm also has a technical
cooperation agreement with TVB of Hong Kong.

According to the booklet, Indomarco operates the largest chain
of grocery stores/minimarkets in Indonesia, under the name
Indomaret. Due to its competitive pricing and large number of
branches (288 outlets as of July 1999, of which 32 outlets are
franchises), Indomaret is a household name in many cities across
Indonesia. The company began awarding franchise licenses in 1997
to parties which wished to open their own Indomarets.

The third IPO candidate, Kerismas, began its operation in 1980
and owns two factories in Jakarta and Manado. The company
produces galvanized iron sheets, as well as blinds for offices
and public facilities.

Kerismas also produces laminated products for home appliances,
as well as electronic goods and office equipment, including
refrigerators and tape decks. (rei)