State asset management company PT Perusahaan Pengelola Aset (PPA) asked PT Kertas Kraft Aceh (KKA) to find a strategic partner who can revive ailing state paper producer.
“We have suggested that KKA find a strategic partner. However I don’t know if our idea has been accepted by the restructuring committee,” PPA president director Boyke Mukijat told reporters in Jakarta recently.
PPA said that the final decision rested with State-Owned Enterprises Minister Mustafa Abubakar.
Boyke declined to comment the funds needed for KKA to resume operation. According to reports, KKA needs US$60 million.
The paper company closed in 2007 due to debts and raw material shortages after the Aceh governor banned local forest exploitation.