Automaker PT Timor Putra Nasional [TPN] has said it needs an injection of an additional US$106 million to complete its auto assembling plant.
The company, which was at the center of international controversy over a generous tax break given by the previous government, already spent US$446.3 million on the project.
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TPN was formerly owned by Hutomo Mandala Putra, better known as Tommy, the youngest son of former President Soeharto, but it has been taken over by the government for large unsettled debts mostly to the state banks.
TPN commissioner Suharto (not related to Tommy’s father) said the company is looking for new investors to provide the additional fund.
Suharto said he hoped that the Indonesian Bank Restructuring Agency [IBRA], which now controls the company, would speed up the restructuring of its debts.
The restructuring of the debt is necessary before investors are expected to invest in the company, he said.
From June 1996 to July 1997, TPN imported 39,715 units of completely knocked down passenger cars from South Korea.
Around 36,000 of the cars have been assembled and sold so far.
