Jakarta Governor Basuki Tjahaja Purnama said the Regional Jakarta Government, which owns a 72 percent stake in the company, approves 's move to conduct a rights issue in order to tap new funds provided that a foreign strategic partner will team up with Pembangunan Jaya Ancol. Purnama, usually called Ahok, said the Regional Jakarta Government is ready to see its share ownership decline to the range of 45 - 50 percent (from 72 percent currently) but emphasized it wants to remain the majority shareholder of the company. Currently, other shareholders of Pembangunan Jaya Ancol are Pembangunan Jaya (18 percent) and the public (10 percent). The company was listed on the Indonesia Stock Exchange (IDX) in July 2004.

Regarding the strategic partner, Ahok said it should be a well-established foreign player in the recreational and entertainment sector. As examples he mentioned Disneyland and Lotte World. If Pembangunan Jaya Ancol can team up with such a foreign counterpart it should result in higher quality services and corporate management.

Ahok added that if Pembangunan Jaya Ancol cannot find such a partner, then it should not issue additional shares through a rights issue. Instead, the Regional Jakarta Government can inject additional funds up to IDR 500 billion into the company (taken from the local budget).

This year the company set aside IDR 1.6 trillion in capital expenditure, mostly to be used for its recreational business.


james morton |

Six Flags is another possibility. For a more complete partner offering multi media and property expertise
I suggest Wanda Group from China.The negotiating position would be stronger if the share price was higher. That way dilution to existing shareholders especially the city would be less. The way for that to happen is for the company to start engaging now with the financial market. Management is too reclusive and passive and needs to get out more to promote the company and its prospects. That requires working with a couple of brokers to produce useful research, attending investor conferences and doing pre deal road shows to investors.