Indofood changes plans for Bogasari proceeds - Brief Article

Eurofood, Feb 17, 2000

The world's largest instant noodle maker, Indofood Sukses Makmur of Indonesia, says it will not use the cash raised by the disposal of its Bogasari Flour Mills division to repay debts. President and chief executive officer Eva Riyanti Hutapea said the company's market position and operating revenues were strong enough for the debts to be repaid from normal operations.

Bogasari was set to be spun off in the first quarter of this year to repay foreign debts but as business looked up and the rupiah gained in strength the sale no longer seemed imperative (see Eurofood, 16 December 1999, p9). While the deal is still expected to go ahead, the cash will probably now be used to stoke the branded consumer goods business and upgrade facilities.