Mandiri conducts due diligence on Semen Kupang, Indonesia

Mandiri conducts due diligence on Semen Kupang, Indonesia
Published: 04 October 2006

PT Bank Mandiri Tbk is planning to conduct due diligence on the financial performance of PT Semen Kupang regarding with the bank’s plan to settle the IDR536bn bad debt of the cement company.  
 
The Director of Bank Mandiri Bambang Setiawan said that the shareholders of Semen Kupang -PT Pengelola Investama Mandiri, provincial government and SOE Ministry- have agreed to settle the debt of the company.  
 
"As the holder of 57.9 per cent shares, we are responsible to settle the bad debt of Semen Kupang, but we are still discussing on how we will do that," he said yesterday.  
 
The first thing the bank will do, he said, is conducting due diligence on the performance of Semen Kupang, which is still prospective for eastern Indonesia and north Australia.  
 
The SOE Minister Sugiharto said Semen Kupang is not a state company as the government’s stake is only 38% and the municipal government has only 2% stake. The rest shares belong to Bank Mandiri.  
 
"In such condition, the government is committed to set the problem as the business is still prospective," he said.  
 
He said that the thing the shareholders should do is injecting fresh money to Semen Kupang and it could be done in cooperation with other SOEs.  
 
"There should be some fresh working capital so that it can be back to normal. The figure has not been determined yet as it was being discussed technically," he said.