INDONESIA RAISES STAKE IN ALUMINIUM PLANT
  Indonesia has increased its share in a
  434-billion-yen aluminium smelter joint venture with Japan from
  25 to 37 pct, Asahan Project Authority director A.R. Suhud
  said.
      The Japanese Export-Import Bank said Indonesia had raised
  its share of (P.T. Indonesia Asahan Aluminium) company,
  capitalised in 1975 at 91 billion, by swapping 32 billion yen
  in government loans to the company for an equity stake.
      The Japanese shareholders, the Overseas Economic
  Cooperation Fund and 12 companies, are to invest another 24
  billion yen raising capitalisation to 147 billion yen.
      Asahan reported total losses of 97.6 billion rupiah between
  1982 and 1985. Suhud said much of the company's 320 billion yen
  debt had been caused by falling tin prices and the appreciation
  of the yen against the U.S. Dollar. Aluminium is sold in
  dollars.
      Prices improved from 1,150 dlrs a tonne six months ago to
  about 1,450 dlrs today. The plant is supposed to break even if
  prices stay at 1,500 dlrs a tonne.
      Sahud said the plant, with a capacity of 220,000 tonnes a
  year, would probably lose money again in 1987. The plant,
  situated in North Sumatra, produces mostly for Japan.
  

