Indonesia’s government has officially converted petrochemical company PT Tuban Petrochemical Industries (Tuban Petro) debt through additional state capital investments of Rp2.61 trillion The value is equivalent to 157,906 company shares.
The decision was contained in Government Regulation Number 66 the Year 2019 regarding the addition of capital to the shares of Tuban Petro which was signed by President Joko Widodo on September 19. The regulation was officially promulgated by the Ministry of Law and Human Rights on September 23.
With the addition of this capital, the amount of state capital in Tuban Petro will be valued at Rp2.91 trillion or equal to 175,406 shares. Thus, the portion of government-owned shares in the company rose to 95.9%, from previously 70%.
Tuban Petro is a holding company of Trans-Pacific Petrochemical Indotama, Petro Oxo Nusantara, and Polytama Propindo. The company was formed by Indonesian Banking Restructuring Agency (IBRA), to settle Rp3.2 trillion in debt from the Tirtamas Majutama Group to a number of banks. Tirtamas is a business group that is jointly owned by Honggo Wendratno, Hashim Djojohadikusumo, and Njoo Kok Kiong. In the process of debt restructuring, Djojohadikusumo and Kiong pulled out, leaving Wendratno.