Indonesia’s Bank Mandiri mulls selling Semen Kupang stake

Indonesia’s Bank Mandiri mulls selling Semen Kupang stake
11 October 2006

PT Bank Mandiri is studying options for speeding up the recovery of its soured loans to PT Semen Kupang including the divestment of its stake in the cement maker, Mandiri corporate secretary Mansyur Nasution said.

Semen Kupang, has about 500 bln rupiah worth of non-performing loans which it owes to Bank Mandiri.

"We are discussing options to restructure the debt with parliament, the central government and the provincial government," Nasution told XFN Asia.

Semen Kupang is based in Kupang, East Nusa Tenggara province. Bank Mandiri is the biggest shareholder of Semen Kupang with a 60 pct holding, while the central government and provincial government hold 38 per cent and two per cent stakes, respectively.

Nasution said selling off its holding would enable Mandiri to also comply with an exisiting regulation that requires a bank to divest stakes in non-banks after keeping such investments for five years.

Published under Cement News