Foreign banks offer to assist RI privatization<\/p>\n
JAKARTA (JP): State Minister for the Empowerment of State
\nEnterprises Tanri Abeng said yesterday 21 foreign investment
\nbanks had offered to underwrite the divestment of the
\ngovernment's shares in 12 state firms.<\/p>\n
Tanri told the media after meeting President Soeharto that the
\ngovernment would probably choose 10 out of the 21 banks to help
\nthe privatization program, along with 10 local firms.<\/p>\n
\"We have received offers from 21 international investment
\nbanks to become the financial adviser or lead underwriter, and
\nalso possibly networking to seek strategic partners.<\/p>\n
\"Next week, we will have a selection because it is impossible
\nfor us to use all 21. Maybe we will use 10. Then from local...
\nwe may chose 10 also. So, every foreign bank will be accompanied
\nby one local firm,\" Tanri said.<\/p>\n
The government has said it would sell stakes in seven state
\nfirms through initial public offerings (IPOs) and divest of more
\nshares in five state firms already publicly listed.<\/p>\n
The seven firms are PT Krakatau Steel (steelmaker), PT Pelindo
\nII and PT Pelindo III (port infrastructure and management), PT
\nJasa Marga (toll roads) PT Perkebunan Nusantara IV (oil palm
\nplantations), PT Tambang Batubara Bukit Asam (coal mining), and
\nPT Angkasa Pura II (airport management).<\/p>\n
The five listed firms set for more government divestment are
\nlocal telephone operator PT Telkom, satellite operator PT
\nIndosat, cement producer PT Semen Gresik, tin mining firm PT
\nTambang Timah, and nickel and gold mining company PT Aneka
\nTambang.<\/p>\n
Tanri said the government's shares in one of the five listed
\nfirms had received bids by foreign investors at 100 percent
\nhigher than market prices. But he did not reveal the firm's name.<\/p>\n
\"So we get 100 percent premium. If, for example, the market
\nprice is Rp 1,000, we already get an offer of Rp 2,000. And
\nthat's because we are transparent and they know that,\" he said.<\/p>\n
He promised that all privatization processes would be
\nconducted transparently and would not apportioned to certain
\nparties only.<\/p>\n
\"How can it be apportioned if all the system and procedures
\nare so clear and transparent, and everyone can look into them?\"
\nTanri said.<\/p>\n
The minister also said his office would invite one foreign
\nconsultant, local management institutes and accountants to help
\nhis office to draw up blueprints for the future of state-owned
\ncompanies, which must be completed by the end of September.<\/p>\n
\"Why we must be quick, because by the end of this September,
\nwe must have the blueprint for all these state firms: whether
\nthey will be restructured, sold, developed or privatized,\" he
\nsaid.<\/p>\n
Tanri also said the government would soon change the directors
\nof four large state-owned companies. But he declined to name the
\nfour firms, stating only that one of them was a publicly listed
\ncompany.<\/p>\n
\"We will change directors of four large state firms, and we
\nwill do it maybe within two weeks. This is part of reforms and
\nrestructuring (of state firms),\" he said.<\/p>\n
He said he would call in the presidents and financial
\ndirectors of all 159 state firms into his office on June 18 to
\ndiscuss four major issues concerning restructuring of state firms
\n-- management, investment, finance and privatization.<\/p>\n
Tanri, one of the country's highest-paid executives until his
\nappointment to his ministerial post last March, said he would
\nmanage the state firms in a similar way to a multinational
\ncorporation managing its 200 affiliates around the world.<\/p>\n
\"We will introduce that mechanism,\" he said.<\/p>\n
He said he would also communicate the government's new policy
\non investment by the state firms and their more than 1,000
\nsubsidiaries.<\/p>\n
He would also set guidelines for state firms to seek
\nfinancing, including foreign loans. (prb\/rid)<\/p>",
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