Tjiwi Kimia sells power plant

Tjiwi Kimia sells power plant

JAKARTA (JP): Publicly listed paper manufacturer PT Tjiwi
Kimia is to sell its power generating unit to affiliate Singapore
Power in a move to ease its foreign debt burden.

The unit is to be sold for between US$182 million and US$192
million, Gunawan Taslim, a Tjiwi director, told reporters
following a company shareholders' meeting yesterday.

He said that Tjiwi's foreign debt totaled US$1 billion,
consisting of $800 million in bonds maturing between 2001 and
2004; and $200 million in bank-syndicated loans.

He also said that independent shareholders had agreed to the
management's proposal to sell the power unit to Singapore Power,
which is 49 percent owned by the Sinar Mas Group, Tjiwi's parent
company.

Tjiwi is one of Indonesia's major paper producers. Eighty
percent of its revenue is dollar-based, Gunawan said, adding that
many of its products were being sold to affiliates of the well-
diversified Sinar Mas Group.

Under the asset-selling proposal, Tjiwi will also have a long-
term purchase contract with Singapore Power to provide the
company's electricity and steam needs at a selling price of
between 1.92 U..S. cents and 2.38 U.S. cents per kwh; and between
US$5.35 and US$6.62 per ton, respectively, the company statement
said. (08)