United Tractors may delay the sale of coal subsidiary

Publicly listed PT United Tractors may delay the planned sale of its coal subsidiary Pama Persada Nusantara to wait for an improvement in the country's economy, the company's senior executive has said.

Thomas Alian, the company's director for investor relations, said in Jakarta on Monday that the unfavorable market condition might force the company to delay the divestment in its stake in the coal subsidiary.

"We may delay the divestment in its stake in Pama Persada amid uncertainty in the economy," he said.

United Tractors, which distributes heavy equipment for mining development, has planned to sell some of its subsidiaries to help settle its debts, of which about US$94 million in foreign currencies debts and Rp 49 billion in local debts would mature in 2002.

In addition to Pama Persada, the company also planned to its another coal subsidiary PT Berau Coal to either to the public or strategic investors.(*)