Susanto Tanoto

King of Garuda Mas & Sukanto Tanoto

King of Garuda Mas could not be separated with Sukanto Tanoto and Asia Pacific Resources International Ltd (APRIL). Sukanto immediately call the person at Unibank-owned conglomerate of financial institutions that closed-Bank Indonesia, in October 2001 and in the newspaper eventually fugitive himself to Singapore.

When the New Order rule, APRIL is a giant paper pulp industry to compete with other giants, that is, the Asia Pulp and Paper Ltd. (APP) belonging to the Tjipta Eka Widjaja under the umbrella Sinar Mas Group. However, fate brought the two loans in the banking conglomerates that national traffic jam, when the financial crisis in Indonesia 1997/1998.

Up to now no two giant business is still in the competition the same path. Both the king pulp in Indonesia. RGM over 35% market pulp production with 2.21 million tons year ago through PT Riau Andalan Pulp & Paper. Sinar Mas the 42.4% market pulp, consisting of 1.8 million tons of production through PT Indah KIAT Pulp & Paper Tbk and 0.85 million tons through Lontar papyrus.

Which differentiate, Raja Garuda Mas stuck with the debt of U.S. $ 1.51 billion, greater than the obligations of Sinar Mas APP through the U.S. $ 1.2 billion.

Furthermore, the process of restructuring credit Sinar Mas has been thorough. In fact many people mentioned the business Sinar Mas has been restored as before the crisis, the current assets of U.S. $ 7 billion with 300,000 employees. Instead, RGM still tergiversate with the restructuring process which sustained to this day.

Re-negotiation

In a press meet last week, the management of PT RGM Indonesia has increased the debt of U.S. $ 187 million from the previous U.S. $ 1.32 billion, a difference due to exchange rate and interest burden. Therefore, they submit the proposal for a new installment.

RGM group debt is in the Bank Mandiri, BNI, BRI, and at least five private banks such as Panin, Lippo, Danamon, Permata and Commerce and foreign banks including Citibank and Bank of Scotland. When the credit on the run down 1990s, BNI acted as lead of sindikation. Management Danamon states now no longer have a charge to the business groups.

RGM of debt for at least nine are from the company in the business groups, such as Riau Prima Energi, Riau Andalan Paper, Raja Garuda Mas Sejati, Inti Subur Indosawit, Dasa Anugerah Sejati Sejati and Partner Excellence.

Obligations of the biggest came from Riau Andalan Pulp and Paper worth Rp3, 3 billion in Bank Mandiri. In the same bank, debt two other companies, namely Asia and Asia Forestama Raya Raya Glue Sindo Semesta, already settled.

RGM was reputedly agreed debt-restructuring debt through the Jakarta Initiative, and are willing to pay its obligations in 2001. However, the new three-month pass, the company has put out the white flag alias up. Restructuring undertaken by the two back and the Jakarta Initiative ended in May 2002.

The creditors, including IBRA institutions when it has charged Rp300 billion-ago agreed to re-scheduling of debt. RGM ago given the leeway to loan installments starting in 2005.

improved paper with the price level of U.S. $ 500 per ton at this time, add ammunition for creditors to ask RGM increase repayments to U.S. $ 120 million per year, from U.S. $ 67 the previous year. For the annual installments of U.S. $ 67 million is BASED on the price of paper pulp in 2002 worth U.S. $ 380 per ton.

Sukanto Who?

Many people know Sukanto Tanoto as the mysterious figure, cunning, and full of controversy. Born in Belawan, North Sumatra on December 25 1949, Sukanto known as the Timber Baron because of its ability to integrate forestry business under the flag RGM.

Had disappeared at the end of 2001 following a closure Unibank, pengusahan native named Tan Kang Hoo is returning to the public in 2004 when President Megawati Soekarnoputri initiate a project in Batam. According to the Chairman of the Board of Finance Check Anwar Nasution, the businessman sat in the second line on the right side and back of the head in front of the State seat Anwar Nasution.

"How may employers and can be invited to sit better with the position of senior deputy governor of central bank," Anwar protested in an interview with a private television station. In 2004, Anwar is still a senior deputy governor of Bank Indonesia.

Since then, Sukanto longer appear invisible to the public. However, his name spoken again last week as the main creditor, Bank Mandiri, with charges less than Rp5, 34-trillion in the information open to the press mentions as one of the RGM is debitor not have a complete liability in good faith. "There debitor that business expansion overseas, but in front of our states have no ability to pay," said director of the mainBank Mandiri Agus Martowardojo.

Of course, RGM oppugn tudingan this. In addition to the states to meet minimum obligations, business groups also refused to give the company another creditor. They take refuge behind the ownership of different companies. "If in a store, I am one to share with friends, and shop in the B, I also join with other friends, both of this store can not mixed stir management," Hasan said such deception, Dirut PT RGM Indonesia.

Some time after the close Unibank in October 2001, Sukanto tell the also disappears, so that the government issued a gallant command of the King's Forest Belawan this. National Banking Healthy of body also can not do much to the owner of Unibank in late-government bailout worth Rp3, 1 trillion is.

February has made the government revoked the status of gallant husband Tinah Bingei it. About Go to foreign and even move the head office in Singapore RGM, Sukanto berkilah because you want to develop the market.

"We want to evidence that Indonesia is not only the blade enclosure and get facilities from the government. But we can conquer the world and great competitors," he said in an interview with Business in October last year.

In the authorized sites, RGM, which was established in the 1970 decade has claimed more assets of U.S. $ 6 billion to employ 56,000 employees. In addition to pulp, business groups also produce Stationery and office paper with a capacity of 400,000 tons per year.

Abroad, Sukanto expand business with the company has a share in the oil palm National Development Guthrie, Electronic Magnetic Singapore, and paper mills in China.

Furthermore, Sukanto is a graduate of the world's leading business schools such as Harvard (1983), and the Wharton fellows program (2001). Sometimes the child is father of four is still on leave to attend the short course. "Careers me one more: lifelong professional students."

He also classified the matter with donasinya education in various universities abroad. In Indonesia, the value of scholarships to students RGM Gadjah Mada University, Yogyakarta in the 90's decade are higher than most other companies.

Now, when RGM problematic credit, bank-bank lender is hoping that Sukanto maintain good faith, as care on education. And ultimately, RGM want installment increase to U.S. $ 120 million from only U.S. $ 67 million per year as they have requested.

If that happens, then the burden of NPL banking would far reduced. The contribution of RGM is big enough to credit problems of the banking industry reached Rp56 trillion. Do not be until after conquering the world, and competitors are large, thus leaving the creditor in pain