Four state firms to be privatized in 2001: Prijadi<\/p>\n
JAKARTA (JP): Four state-owned enterprises are ready to be
\nprivatized next year in a bid to raise around Rp 5 trillion
\n(US$537.63 million) in proceeds, finance minister Prijadi
\nPraptosuhardjo said on Monday.<\/p>\n
The four state-owned companies includes superintending firm PT
\nSucofindo, airport operator PT Angkasa Pura II, and
\npharmaceutical firms PT Kimia Farma and PT Indofarma, Priyadi
\ntold a hearing session with the House of Representatives
\nCommission IX for financial and development planning affairs.<\/p>\n
Prijadi said the government considered, in designing the
\nprivatization program, the financial soundness of the company,
\nthe investor interest and uncontrollable factors such as
\npolitical, security and macro economic conditions.<\/p>\n
Sucofindo is known for its services in export inspection,
\ncertification and commodity inspection, and trade facilities.
\nAngkasa Pura II operates the Soekarno Hatta International Airport
\nin Jakarta, while Kimia Farma and Indofarma manufactures various
\nover the counter drugs.<\/p>\n
The four companies were among the eight to ten enterprises
\ninitially prepared for privatization this year in a bid to raise
\nRp 6.5 trillion in proceeds but the government failed to realize
\nthe plan due to various problems including unfavorable market and
\npolitical conditions.<\/p>\n
Prijadi said the privatization program would help plug the
\n2001 state budget deficit projected to reach Rp 52.11 trillion or
\n3.7 percent of the gross domestic product (GDP).<\/p>\n
He said the remaining source of funds for the plugging of the
\nbudget deficit would come from the Indonesian Bank Restructuring
\nAgency (IBRA), which would contribute around Rp 27 trillion from
\nits asset disposal, and overseas loans.<\/p>\n
The Consultative Group on Indonesia (CGI), the grouping of the
\ncountry's traditional lenders, recently pledged to provide some
\n$4.77 billion in loan next year.<\/p>\n
Prijadi said the breakdown of IBRA proceeds included Rp 8.92
\ntrillion from the sale of restructured bank loans, Rp 2.23
\ntrillion cash revenue from the restructuring of bank
\nnonperforming loans, Rp 2 trillion from the sale of noncore
\nassets, Rp 8.5 trillion from the sale of ownership in various
\ncompanies and 3.6 trillion from the divestment of ownership in
\nbanks.<\/p>\n
Prijadi also said that out of the country's 158 state
\nenterprises, 132 were expected to generate profits next year,
\nwhile the others would still be operating at a loss.<\/p>\n
He did not list the name of the companies but he said the
\nprofitable companies were projected to contribute a combined Rp 8
\ntrillion in cash to help finance the state budget.<\/p>\n
He also said the dividend pay out ratio of the healthy
\ncompanies in 2001 was projected to be around 50 percent of the
\nnet profit.<\/p>\n
He said some companies, particularly those who were investing
\nor paying debts might only be able to have a dividend pay out
\nratio of less that 50 percent. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/four-state-firms-to-be-privatized-in-2001-prijadi-1447893297",
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