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There has been strong interest recently from potential investors in Indonesian automobile assembler PT Astra International. Businessman Bob Hasan has been building up a stake in the company, and PT Hanjaya Mandala Sampoerna has also taken predatory action. However, this company now seems to have decided not to increase its stake in Astra any further. Its actions in relation to Astra have attracted dissent from a number of minor shareholders.

The Jakarta Stock Exchange's composite index stood at 417.3 as of Aug 31, 1993, a 53% rise since the year began and a definite sign that the market's decline, dating from mid-1990, has finally ended. Although wise economic policies, such as a relaxation of interest rates, helped set the stage for this recovery, most of the credit goes to Prajogo Pangestu, controlling stockholder of Barito Pacific Timber (BPT). Prajogo masterminded an offer of 85 million shares of BPT stock at $3.45 a share that was a key factor in the market's revival. Prajogo may plan the purchase of car maker Astra's stock.

Investors in Astra International, an Indonesian car manufacturer, have increased the its stock price from the 12-month low reached on the Jakarta exchange in Nov 1993. This rise has restored faith in Astra's soundness, which is important due to its 10% share of Jakarta's Composite Index and potential for reviving the Indonesian economy. However, several factors indicate that this rise may be transitory. These factors include Astra's status as a holding company comprising 100 ventures, its indebtedness and government plans for deregulation.