Dahlan Iskan: Jakarta Lloyd to Breathe Again

JAKARTA, KOMPAS.com - State enterprises minister Dahlan Iskan said state-owned shipping company PT Djakarta Lloyd would lease a "handy max" ship from Japan to ship coal to state-owned electricity company PT PLN, enabling the company to "breathe" again.

The minister said here on Friday that the Japanese ship owner expressed his willingness to lease out his ship, which has a 50,000 ton cargo capacity. "They trusted me to be leased out to PT Djakarta Lloyd."

He said, according to the plan, the ship would carry 1.5 tons of coal ordered by PT PLN from Tarahan in Lampung to Sibolga in Sumatra. Dahlan did not reveal the name of the Japanese company that would lease out the ship, nor the cost PT Djakarta LLoyd has agreed to pay.

Dahlan, who is former president director of PT PLN, said the Japanese company has a management partner in Indonesia. "The leasing agreement is now still being processed and hopefully, in the next three or four months, the ship will be operational."

Further, Djakarta Lloyd has had liquidity problems, becoming insolvent and unable to pay its debts, including salaries of its employees. The company’s debt has swelled to Rp1.27 trillion, in addition to a sub-loan agreement of Rp3.58 trillion.

Of note, the company has suffered losses since 2006 and the loss is estimated to have reached Rp1.1 trillion by 2010. The state enterprises ministry and the House of Representatives are still seeking a solution to the problem and are considering three options.

The first option is merging the indebted company with another state-owned company; postponing the repayment of its debts through an agreement with creditors with the settlement expected to be completed in 20 to 27 years; or liquidating or selling the company’s assets to pay its employees, taxes and creditors.

Dahlan said it was difficult to settle the company’s debts, as it is still facing a lawsuit and its ships have been confiscated by creditors. "The company’s debt burden is now around Rp3 trillion, but could reach Rp6 trillion. So, if the company has to be shut down and has to pay the debt, it would be better setting up a new company as well."

After securing a lease, the minister said he hoped the company would soon settle the payment of the salaries of its employees, which has been delayed for the past 10 months. Regarding the possibility of laying off employees, the minister said employee severance payments could come from the proceeds of the sale of the assets.