Written on 18.10.2013 - Industry
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INDONESIA: Multistrada’s rubber plans attract investors

Investors are clamouring for a stake in one of Indonesia’s most prominent rubber producers as the tire factory subsidiary flirts with international bidders. Interest has been expressed by four foreign investors who want to develop the rubber plantations owned by Multistrada Agro International in East Kalimantan for the manufacture of automotive tires.

Pieter Tanuri, president director of Multistrada Arah Sarana, of which Multistrada Agro is a subsidiary, said the company was still negotiating with potential investors and had not come to a decision.

There was no report on the value of the deal.

Pieter said Multistrada favored collaboration with investors for technology in funding in order to increase production on current plantations rather than acquiring more rubber plantations.

He said they would focus on land development, and that they were currently clearing about 1,000 hectares.

“Our land has a great potential, and we will plant it in stages,” Pieter explained.

He said the company currently has a land area of 120,000 hectares which is ready for development.

Multistrada Arah, through Multistrada Agro, owns four subsidiaries with expansive land: Meranti Laksana, Meranti Lestari, Mitra Jaya Nusaindah, and Sylvaduta.

The company has allocated USD 110 million to pay debts through refinancing and USD 60 million to increase its production capacity and working capital.

Source: Daily "The Jakarta Globe", Jakarta; 8 Oct 2013

(Syed Rashid Ali, Karachi, Pakistan)