ASTRA INTERNATIONAL: Debt Rescheduling Likely

I N D O N E S I A
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ASTRA INTERNATIONAL: Debt Rescheduling Likely

PT Astra International Tbk is determined to reschedule the debt
maturing on December 31 2002 worth US$133 million and Rp165
billion, Bisnis Indonesia reports, quoting President Director
Theodore Permadi Rachmat, noting that a financial advisor has
been appointed in order to analyze payment of the maturing debt.

"I think rights issue will not materialize as performance of the
first quart is quite good," Rachmat said and didn't answer when
asked whether settlement would be a combination of paying half
of the debt and extend the due date for the next half.

He added that the Company will most probably sell stake in PT
Astra Agro Lestari Plc as it is one of the assets that can be
sold easily.

Earlier, the Company disbursed US$15 million to Indover Bank in
April 2002 in relation to a 1984 corporate guarantee on the
Soeryadjayas' debt.


ASTRA INT'L: Rights Offer Best Way to Cut Debt, Says Analyst
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Samuel Sekuritas Analyst Sri Wijayaningrum said that PT Astra
International will be best able to cut debt by making a rights
offer, IndoExchange reports.

The report said that a sale of stock to current shareholders
that raises at least Rp1.6 trillion would be "the best of the
alternatives". Other options include divestment of stake in a
Toyota Motor Corp joint venture and debt restructuring.

"A stronger rupiah will also help," Sri Wijayaningrum added.

Astra International, a 30% stake owned by Singaporean Cycle &
Carriage, must start its negotiations with creditors by July in
order to finance debt payments of US$133 million and Rp165
billion due by December.