PPA will sell Petro Oxo

The Asset Management Corporation (PPA) plans to sell some former IBRA's assets next year targeting to tap some IDR850 billion proceeds.
One of the most benefiting is derived from PT Petro Oxo Nusantara, the subsidiary firm of PT Tuban Petro.
But the company excludes Tuban Petro as one of the would-be divested assets list.
Tuban Petro has three subsidiary firms, namely PT Trans Pacific Petrochemicals Indotama (TPPI), PT Petro Oxo Nusantara (PON), and PT Polytama Propindo.
Tuban Petro possesses 59.5 percent shares of PT Trans Pacific Petrochemical Indotama (TPPI) and 80 percent shares of PT Polytama Propindo. In addition to PPA, the other shareholders include Itochu Corporation with 4.25 percent possession, Tuban Petrochemicals Pte Ltd (subsidiary firm of the Siam Cement PCL with 17 percent) and Sojitz Corporation 4.25 percent, and Pertamina 15 percent.
TPPI is the petrochemical company producing the largest aromatic nationwide. Located in Tuban, East Java, the company produces some 600,000 tons of paraxylene or half of the national demands.
PT Polytama is the producer of polypropylene with 200,000 tons production capacity per year. Petro Oxo is the producer of ethylhexanol with 120,000 tons production capacity per year.
Finance Minister representing the government owns 70 percent Tuban Petro shares and the other 30 percent owned by the former shareholder, Honggo Wendratno, through Sila Kencana Lestari Group.
Indonesian Bank Restrcturing Agency (IBRA) restructured Tuban Petro by issuing multi years bonds which would be paid by Sila Kencana Group by 2014 at the latest.
The government has got dividend from TPPI, PON, and Polytama productions prior to the debt payment.