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Jakarta Post

Tjipinang to issue new shares, get fresh capital

City-owned food security company PT Food Station Tjipinang Jaya is set to issue Rp 47

Dewanti A. Wardhani (The Jakarta Post)
Jakarta
Thu, April 2, 2015

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Tjipinang to issue new shares, get fresh capital

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ity-owned food security company PT Food Station Tjipinang Jaya is set to issue Rp 47.5 billion (US$3.6 million) in new shares in an attempt to increase its capital and gain the city administration'€™s trust.

Food Station Tjipinang Jaya president director Dwi Ananto said that the shares would be sold at Rp 1 million each.

'€œWe will start issuing the new shares soon to increase capital in order to get a capital injection from the city administration,'€ Dwi said after a shareholders meeting at Food Station Tjipinang Jaya on Tuesday.

He added that some of the shares were set to be purchased by city-owned developer PT Jakarta Propertindo (Jakpro), while the rest would be made available to the public. The new shares and the capital injection, Dwi said, would greatly help the firm safeguard rice stocks for the city during the seasonal drought and crop failures.

'€œThe demand for rice in Jakarta reaches up to 3,000 tons per day. We'€™re afraid of not being able to meet the demand in times of drought and crop failure,'€ Dwi said.

He went on to say that prior to the dry season, his company would procure rice to ensure stocks and price stability.

Meanwhile, Jakarta Governor Basuki '€œAhok'€ Tjahaja Purnama said the city was set to inject Rp 1.5 trillion in Food Station Tjipinang Jaya to support the firm.

'€œWe will inject Rp 1.5 trillion in Food Station, so the city through the firm can safeguard our rice stocks and keep prices stable,'€ Ahok said on the same occasion.

Earlier this year, cities through out the archipelago, including Jakarta, saw rice prices soar by about 30 percent. The increase was apparently caused by an expected late harvest, which will fall between March and June this year.

The price of rice is one of the main triggers of inflation and price
fluctuations given that the commodity is a staple food of the majority of Indonesia'€™s 250 million people.

Ahok went on to say that he would try to include the capital injection for Food Station Tjipinang Jaya in the 2015 city budget. The city administration and the Home Ministry are currently evaluating the draft 2015 budget.

They are planning some efficiency measures by reducing or scrapping unnecessary allocations. Through some budget cuts, Ahok went on, the city would try to reserve Rp 1.5 trillion for Food Station Tjipinang Jaya.

'€œTherefore, we expect Food Station Tjipinang to be a key player for Jakartans during drought and crop failure,'€ Ahok said.
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'€œWe will start issuing the new shares soon to increase capital in order to get a capital injection from the city administration.'€

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