Two Barito log suppliers hand over 49% shares to govt
Two Barito log suppliers hand over 49% shares to govt
JAKARTA (JP): Minister of Forestry Djamaloedin
Soeryohadikoesoemo announced yesterday that PT Aya Timber and PT
Yayang Indonesia in South Kalimantan have agreed to hand over 49
percent of their respective equity shares to government-run firms
in return for the renewal of their forest concessions.
"Aya Timber and Yayang are controlled by Prajogo Pangestu but
they are not subsidiaries of the listed PT Barito Pacific Timber,
which is also chaired by Prajogo," the minister said in a press-
conference attended by about fifty reporters.
The minister held the press conference after a closed meeting
with Prajogo at his office here. The businessman was accompanied
by Barito's chief executive officer, Joso Gautama.
"Aya Timber and Yayang are log-suppliers to Barito but they
are not part of the listed company's entities," he said.
Djamaloedin did not mention how many shares Prajogo owns in
the two companies.
"Prajogo himself told me just now that he has agreed to meet
our demands for the acquisition of 49 percent shares of the two
companies," added the minister.
Prajogo, believed to be one of the most politically connected
industrialists in the country, was not immediately available for
comment. The other Barito executives also declined to comment.
Capital
Djamaloedin explained that the takeover is to be conducted
without the injection of fresh capital. "The government will pay
for the takeover with the dividends that it will receive from the
two companies," he said.
The minister added that the management of both Aya Timber and
Yayang was "of doubtful quality" which required the takeover.
Djamaloedin did not elaborate on the extent of the alleged
damages in the forest concessions of the two companies, which
were reported to reach 121,500 hectares in total.
He said, however, when extending their forest concession
rights, the Ministry of Forestry took into account the fact that
the two companies supplied raw materials for Barito, the largest
company listed on the Jakarta Stock Exchange.
"This is an important industry, especially for exports and
foreign exchange earnings. We cannot let exports fall," he said.
Djamaloedin's statement yesterday, consequently, retracted his
previous statement on Wednesday that Barito had "poorly managed"
its forest concessions and would have to surrender 49 percent of
its shares in order to have its concessions renewed.
The minister, however, denied yesterday that he made such
statements. He alleged reporters had misquoted him.
"I never said that I was planning such moves against Barito.
You people from the press made it up," he said. (hdj)