MINISTER CAUTIONS RI CONSTRUCTION FIRMS OPERATING IN MIDDLE EAST

Jakarta, April 20 (ANTARA) - State Enterprises Minister Sofyan Djalil has cautioned state-owned construction companies operating in the Middle East to be more careful as the world financial crisis is starting to affect property business in that region.

"The property industry in the Middle East region is facing problems and therefore constrcution companies must be careful when carrying out projects there," Djalil said at his office here on Monday.

He said his office had summoned among others PT Adhi Karya executives to ask for a report on the development of its projects in the region.

Adhi Karya is now carrying out hotel and shopping mall development projects worth Rp969 billion in Oman, which are expected to finish in May 2009.

Previously, Adhi Karya developed Hotel Shangri-La in Qatar.

Another state-owned company carrying out projects in the Middle East is PT Wijaya Karya.

The company is currently constructing a tunnel in Palem Jabrali in Dubai. It has also been entrusted with an East-West toll road development project strecthing up to 1,400 kilometer long in Algiers. The company constructed 18 bridges in the country before.

Sofyan Djalil said based on the reports from the state-owned construction companies anticipatory measures could be taken with regard to indications of collapsing in property business in the region.

The minister said however that so far there had not been any cancellation of projects.