Lippo's troubles spell credit risks for Reits, but OUE could benefit

Singapore

THE Indonesian authorities' probe into alleged bribery linked to the Lippo Group's US$21 billion Meikarta property project near Jakarta is unlikely to have a significant impact on Riady-linked counters listed in Singapore, analysts say.

This is largely because of how the group's Indonesia and Singapore businesses have been, for the most part, divided between the two brothers, James and Stephen Riady.

James Riady, the group's deputy chairman and the one implicated in the alleged bribery case, controls property developer Lippo Karawaci.

His brother Stephen Riady, a Hong Kong national, controls OUE, the business of which is mainly in Singapore and outside Indonesi…