PT Bakrie & Brothers, the holding company for Indonesia's Bakrie family, said on Monday it plans to spin off its infrastructure unit with assets of $3 billion, in an initial public offering by early next year.

Investors have piled into Indonesian bonds and stocks in the past 18 months, particularly banks and other plays on domestic demand, attracted by a combination of political stability, strong growth and an increasingly prosperous middle class.

But there are few direct plays on infrastructure, a sector which requires billions of dollars of investment. Indonesia's severely strained power and transport facilities are a constraint on economic growth: by attracting more investment in this sector, the government aims to boost growth to 7 percent by 2014. Eddy Soeparno, Bakrie & Brothers' chief financial officer, told Reuters the plan to list the PT Bakrie Indo Infrastructure unit would depend on market conditions.

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Posted by mopeng at June 14, 2010 3:41 PM