Garuda Initial Public Offering to be Delayed
Tuesday, 09 February, 2010 | 17:22 WIB

TEMPO Interactive, Jakarta: The State Enterprises Ministry has announced on Tuesday (9/2) delay on the initial public offering for shares in the state flagship carrier Garuda Indonesia to the third quarter this year, as the airline is yet to settle its debt problems with Bank Mandiri.

State Enterprises Minister Mustafa Abubakar said the offering is expected to raise US$300 million and that garuda will use the result to pay the principal loan of Rp1 trillion to Bank Mandiri and add its number of fleet.

Executives with garuda Indonesia could not be reached for comment. The company is in debt to Bank Mandiri of around Rp3.36 trillion.

After garuda the government also to release some of its stake in Krakatau Steel later in the year, and mustafa said the company is forming a joint venture with South Korean steelmaker Posco “to improve its (Krakatau Steel) ratings.”

RIEKA RAHADIANA | ARIE FIRDAUS