22 January 2013 11:59 [Source: ICIS news]
JAKARTA (ICIS)--Indonesia’s Tuban Petrochemical Industries may have to sell assets if its parent company – the Sila Kencana Lestari Group – fails to repay debts owed to the government by end-March, a senior industry executive said on Tuesday.
Sila Kencana Lestari, which has a 30% stake in Tuban Petrochemical, has a total of rupiah (Rp) 2,800 billion in loans that must be repaid to the government in March, according to Indonesian Olefin, Aromatic & Plastic Industry Association chairman Amir Sambodo.
Sambodo was the president director of Tuban Petrochemical Industries until 9 January this year.
The Sila Kencana Lestari Group owns a 30% stake in Tuban Petrochemical Industries, and the Indonesian government holds the 70% balance of shares.
If the Sila Kencana Lestari Group fails to meet the repayment deadline, Tuban Petrochemical Industries will have to sell its shareholdings in PT Petro Oxo Nusantara (PON), PT Polytama Propindo and Trans-Pacific Petrochemical Indotama (TPPI).
Tuban Petrochemical Industries’ shareholdings in PON, Polytama Propindo and TPPI of 50%, 80% and 24%, respectively, would be put up for sale under the management of a government agency, said Sambodo.
PON operates a 140,000 tonne/year 2-ethylhexanol (2-EH) plant at Gresik and Polytama Propindo operates a 380,000 tonne/year polypropylene (PP) plant at Balongan.
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