Adhi Karya Insists on Asking Infusion of State Capital
Friday, 20 April, 2007 | 15:20 WIB

Tempo Interactive, Jakarta: Despite the previous proposal of state co-financing being rejected, PT Adhi Karya is expecting that it can get state co-financing from the government. This is considered as extra capital for the company. “Hence, state co-financing can be used for accelerating the infrastructure project,” said Managing Director of Adhi Karya Syaiful Imam in Jakarta.

The government, he said, will not find it difficult to offer state co-financing to state-owned enterprises, including Adhi Karya. The co-financing can be obtained from bonds of state-owned enterprises with the 2006 fiscal year that exceeds the target of Rp1.6 trillion. “(I) hope that the surplus can be made use of as state co-financing,” he said.

In addition to expecting state co-financing, he asked that State Minister of State-Owned Enterprises supports the plan of Adhi Karya's rights issue to cover working capital. The reason for this is that by the next five years the cumulative investment of Adhi Karya may reach Rp7 trillion, with debt to equity ratio, two times.

The State co-financing proposal of Rp306 billion will be used for increasing the shares of Adhi Karya by 67 percent. The shares will then be resold through limited offering by maintaining the government’s share ownership of 51 percent.

WAHYUDIN FAHMI
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