Sunday, May 14, 2006
Soeharto Inc, Eight Years Later (I)

Many people don't belive that the downfall of Soeharto in May 1998 has been followed by significant changes in the family's wealths. Even though two key members of the family are behind the bars, Tommy Soeharto (youngest son) and Probosutedjo (step-brother), Soeharto Inc is alive and still on the top rich list.

Let's start with Tommy's Humpuss.
1) PT Humpuss Intermoda (HITS) Tbk, listed company with total assets of Rp2.3 trillion (US$250 million) as of Dec 2005, Humpuss owns 73% shares. Retained profits at Rp1 trillion till 2005. Most of revenue streams from Pertamina's crude and LNG transportation. In 2006, HITS revenue would grow by 35% with the acquisition of new ships last year.
2) Humpuss Sea Transport Pte Ltd, Singapore-based, total assets as of Dec 2005 at US$357.4 million. HITS has 45% shares.
3) Humpuss Funding Corporation, Caymand Island, is the creditor for HITS, keep paying interests since 1997.
4) Condensate Splitter with 70,000 bpd processing capacity in Lhokseumawe, Aceh.
5) PT Humpuss Karbometil Sellulosa, supplies oil drilling companies with chemicals.
6) PT Kaltim Methanol Industry, a 660,000 t/y methanol plant in Kalimantan, Humpuss still owns 10% shares. It sold 60% shares to Sojitz in late 1997.
7) Humpuss Kaltindo Energi: A new power plant built with Rp220 billion investment in Bangka Island, jv with PT Timah.
8) PT Humpuss Elektronika, still the business partner of Telkom.
9) Cash proceeds: Humpuss sold out shares in many companies since 1997, including 60% shares at Kaltim Methanol, 100% shares in Cepu oil block (more than US$300 million), 49% shares in PT Humpuss Terminal Petikemas to Hutchison Whampoa (US$147 million), Marga Mandala Sakti to Astra-Citicorp (Rp255 billion), 25% shares in NEC Humpuss Semicondutor, Humpuss Pengolahan Minyak (14,000 bpd) divestment, and the confiscated Timor funds of Rp1 trillion at Bank Mandiri.
10) Mandala Nusantara BV is listed as the shareholder of Wayang Windu 110 MW geothermal power plant (under Star Energy). I'm not sure what is the relationship between Star and Humpuss.

It's true that Humpuss once trapped in bad loans to IBRA, but under debt restructuring signed in 2000 and 2002 followed by IBRA's divestment of unrestructured/restructured loans in late 2002, Tommy would still one of the richest men when he get out of the prison (in fact he got five years discount already). His 70% shares in HITS equals 1.65 billion shares at Rp530/shares, already US$100 million, right? Tommy's wealth might well above US$1 billion.

Soeharto Inc, Eight Years Later (II)

Second son Bambang Trihatmodjo is probably not as strong as before, but his businesses are still in good shape. (PS: He just got a baby boy from second wife actrees/singer Mayang Sari, just weeks before his daughter's wedding).

1) Bambang through Asriland owns 169 million shares or 13% of PT Bimantara Citra Tbk, a company with total assets of Rp7.42 trillion as of December 2005. With Rp2,500 per share, Asriland has Rp422 billion wealth out of Bimantara. Bambang is the commissioner of Bimantara. Bambang's friends like Rosano Barrack and M Tachril Sapi'ie are also own Bimantara shares along with brother-in-law Indra Rukmana. Combined shares of these guys may well above 20%.
The group was the 10th biggest debtor of Indonesia Bank Restructuring Agency (IBRA) with outstanding of Rp3.4 trillion, but restructured in 2000. Bimantara, among others, agreed to pay IBRA in cash of US$7 million and 46.5 million shares of listed PT Plaza Indonesia Realty Tbk to restructure the property unit PT Usaha Gedung Bimantara. But as of Dec 2005, Bimantara still owns 65 million shares of Plaza Indonesia at Rp5,900/share could translate to net worth of Rp400 billion. Plaza Indonesia has total assets of Rp1.99 trillion as of Dec 2005.

Bimantara controls three major TV stations, RCTI, TPI and Global TV and a network of radio stations.

2) Asriland owns 19% shares in listed property company PT Bukit Sentul Tbk.

3) In 2000, Wiston Park Ltd (owned by Bambang and friends) sold out 25% shares of Osprey Maritime Ltd to World Shipholding Ltd at US$27.4 million. World Shipholding completed the transaction of other shares at US$635 million in 2001.

4) In 2001, Bimantara sold out 45% shares of Satelindo (total proceeds for 70% shares were US$372 million). In the same year, Bimantara sold 19% shares in PT Polychem Lindo to PT Adiguna Eka Sentra at undisclosed price.

5) PT Bima Kimia Citra (BImantara owns 30%) shares still owns 15.79% shares in PT Styrindo Mono Indonesia, the largest styrene monomer producer in South East Asia. BKC sold out its shares in PT Tri Polyta Indonesia Tbk in 2001 at undisclosed price. Tri Polyta is the largest polypropylene producer in Indonesia.

6) Bimantara still owns 40% shares in PT Multi Nitrotama Kimia, the only ammonium nitrate producer in Indonesia. Ammonium nitrate is a raw material for explosives.

7) Bimantara also owns Nusadua Graha International, the owner of Westin Nusa Dua hotel and resort in Bali Island.

8) Bimantara owns 49% shares of PT Trans Javagas Pipeline, a JV with Pertamina, with total assets of more than US$300 million.

9) Cash proceeds: During the period of 1998-2005, Bambang sold out stakeholdings in many companies. Bambang's Asriland sold all shares in Chandra Asri in 1998 at Rp1, almost zero, to Prajogo Pangestu, basically due to the sensitive and massive debt restructuring with IBRA.

No body knows how wealthy he is, but some believe Bambang's wealth is well above US$1 billion as well.

Bambang is reportedly still owns an $8 million penthouse in Singapore and a $12 million mansion in an exclusive neighborhood of Los Angeles, two doors down from rock star Rod Stewart.
KuKuKaChu: dangerously too sophisticated