Unggul Indah to enter property game

JAKARTA (JP): Indonesia's sole producer of alkyl benzene, PT Unggul Indah Corporation (UIC), won an approval from its shareholders yesterday to enter the property business.

UIC president Hartono Gunawan said the company would do this through its subsidiary, PT Unggul Indah Investama.

He said the subsidiary would acquire a 40.30 percent stake in PT Wiranusa Grahatama in exchange for UIC's 17,150-square-meter site adjacent to Wiranusa's 13,380-square-meter site on Jalan Gatot Subroto, South Jakarta.

"The value of the swap is around Rp 24.55 billion," he said after the shareholders' meeting to approve the deal and UIC's expansion program.

He said the massive property project would include the construction of three apartment towers and three office buildings.

"The total cost of the project will be around Rp 650 billion (US$275.4 million). The first phase will begin in April 1997 and the second phase in 1999," he said.

UIC, listed on both the Jakarta and Surabaya stock exchanges, is controlled by PT Aspirasi Luhur. The public owns about 34 percent of the shares.

UIC is building its third alkyl benzene production plant at its industrial compound in Merak, West Java, following the completion of its $60 million PACOL (Paraffin Convert to Olefin) production unit.

Expected to be completed in 1998, the $50 million plant would increase UIC's total production capacity to 210,000 tons a year.

The company operates two alkyl benzene plants with a combined production capacity of 150,000 tons a year.

Alkyl benzene is the primary material in detergent.

Hartono said UIC had made a Rp 25 billion net profit and Rp 265 billion in sales for the past nine months.

He projected UIC's sales would be about Rp 350 billion for the year.

Hartono projected his company's net profit and total sales for 1997 would increase by at least 10 percent. (04)