Indonesia wants to buyback container port from Hutchison

Bisnis Indonesia reported yesterday that state-owned port operator PT Pelindo II was exercising the buyback of 52% shares in PT Jakarta International Container Terminal (JICT) from Grosbeak Pte Ltd, a subsidiary of Hutchinson Port Holding (HPH) of Hongkong. Pelindo II owns 48% shares in JICT.

Grosbeak paid US$215 million for the government shares in a open tender in 1999 and provided US$ 28 million worth of software for it container terminals in Tanjung Priok. Grosbeak is given a concession to operate the terminals for 20 years.

Why Pelindo wants to buy back? Who'll finance that? Is it serious? How if Hutchison don't want to sell the shares?

According to Abdullah Syaifuddin, Pelindo II president director, the state-owned company rejected Grosbeak's proposal to extend the build, operate and transfer (BOT) contract amid declining terminal handling charge (THC). Transportation Minister Hatta Radjasa supported Pelindo. But Mr Syaifuddin didn't come with details of how Pelindo could buy the shares back.

So far, Syaifuddin's plan is just like state-owned enterprises ministry's plan to buyback Indosat shares from ST Telemedia, Temasek's subsidiary.

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