Foreign investors drop plans due to escalating tension<\/p>\n
JAKARTA (JP): At least two of eight foreign investors seeking
\nto acquire stakes in 12 state-owned firms have withdrawn their
\nplans due to heightening social and political tensions, a
\nminister said yesterday.<\/p>\n
State Minister for the Empowerment of State-Owned Enterprises
\nTanri Abeng said the worsening situation made it hard for his
\noffice to sell the government's stake in the firms.<\/p>\n
\"It is worth noting that the current situation, especially
\nsecurity, does influence our efforts to go through reformation
\nprocesses, especially for state-owned enterprises.<\/p>\n
\"There are several investors who wanted to negotiate with us
\nbut then withdrew. At least two have abandoned their plan...
\nincluding one from a neighboring country,\" Tanri told media after
\na ceremony marking the transfer of 159 state firms from various
\ndepartments and state agencies to fall under his supervision.<\/p>\n
In the bloodiest incident in the capital so far, four students
\nfrom Trisakti University in West Jakarta were killed during a
\ndemonstration Tuesday.<\/p>\n
Tanri warned that foreign investors still on the list could
\ncancel their plans if the situation did not improve.<\/p>\n
The government has planned to make additional divestment in
\nfive publicly listed state firms and sell stakes in seven state
\nfirms through initial public offerings (IPO).<\/p>\n
The listed firms are local telephone operator PT Telkom,
\nsatellite operator PT Indosat, cement producer PT Semen Gresik,
\ntin mining firm PT Tambang Timah and nickel and gold mining
\ncompany PT Aneka Tambang.<\/p>\n
The companies being prepared for the IPO are PT Krakatau Steel
\n(steelmaker), PT Pelindo II and PT Pelindo III (port
\ninfrastructure and management), PT Jasa Marga (toll roads) PT
\nPerkebunan Nusantara IV (oil palm plantations), PT Tambang
\nBatubara Bukit Asam (coal mining) and PT Angkasa Pura II (airport
\nmanagement).<\/p>\n
Tanri said a conducive business climate, especially stability,
\nwas a necessary requirement to attract foreign investors to
\nacquire stakes in the state firms.<\/p>\n
\"If we cannot guarantee stability, no foreign investors will
\ninvest in Indonesia.\"<\/p>\n
Tanri said the entrance of foreign investors into the 12 state
\nfirms was vital for the country because they would not only bring
\nfresh funds but also attract other foreign investors to follow
\nsuit in investing here.<\/p>\n
If the situation improved, Tanri said he expected he would
\nsign share purchase agreements with foreign investors to be
\nstrategic partners of state firms before December.<\/p>\n
Thus far, Tanri said, interest from domestic investors for
\nstakes in the 12 state firms was still minimal because most
\nlocal firms were currently suffering liquidity problems.<\/p>\n
Tanri said that even state firms were suffering serious
\nliquidity problems, especially those with rupiah revenues but
\nburdened by short-term, dollar-denominated debts.<\/p>\n
Companies which came under Tanri's supervision yesterday were
\n36 firms from the Ministry of Industry and Trade, 30 from the
\nMinistry of Finance, 20 from the Ministry of Forestry and
\nPlantations, 18 from the Ministry of Communications, 16 from the
\nMinistry of Public Works and 10 strategic state firms from the
\nAgency for the Assessment and Application of Technology. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investors-drop-plans-due-to-escalating-tension-1447893297",
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"sponsor": "Okusi Associates",
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