Polychem Indonesia Tbk

Brief of Company Background

By April 1993, installed capacity had grown to 10,000 tons. Raw materials used in production are nylon, polyester, rayon, latex, resorcinol and denabond, some of which that are still continued to be imported. The company markets directly to consumers, with domestic buyers taking 80% of sales and the remainder comprising exports to Malaysia, Thailand, the Philippines, Australia and Pakistan. Indonesian tire manufacturers who are using the company?s tire cord are Yokohama, GT, Inouoe, Intirub and Double Coin. Technical assistance is obtained from Yokohama Company Ltd., Japan, and PT Gajah Tunggal Indonesia. In November 1994 the company has issued a new share, about 60.8% or Rp 155 billion of the fund will be used for acquisition of PT Filamindo Sakti, 18.6% will be invested in additional production capacity and 12.3% used to repay loans to BNI and BDNI. In 1995 the company with 50% share is joining up with HICOM Berhad of Malaysia to build a US$ 60 million tire plant. Construction is expected to be completed in 1997. As discussed in note 19 and 30, in relation to the settlement of loan from BDNI - suspended bank (BBO) between founder of Gajah Tunggal Group and Indonesian Bank Restructuring Agency, all of the company?s shares owned by PT Gajah Tunggal Mulia and the obligation of the company and its subsidiary to BDNI - Bbo were transfered to PT Tunas Sepadan Investama (TSI). TSI is a holding company established by the ounder of Gajah Tunggal Group and IBRA in relation to settlement of the founder?s obligations with IBRA. The Company booked net profit of IDR41.936 billion in 2005, down sharply from IDR458.097 billion in 2004. Net sales were down from IDR4.481 trillion to IDR3.958 trillion.

Shareholder List

Management