The government plans to sell its stake in five industrial park companies worth more than Rp 900 billion ($87.3 million), a senior official said on Tuesday.<\/p>\n
The move comes despite political rivals calling the current administration \u201cneo-liberal\u201d - a derogatory label in Indonesian politics, where selling government assets to private and foreign investors is seen as being against the nation\u2019s interests.<\/p>\n
\u201cWe\u2019ll divest all of our shares in the five parks,\u201d said Muhammad Said Didu, the secretary of the State Ministry for State Enterprises.<\/p>\n
\u201cThey still generate a profit, but it hasn\u2019t been significant.\u201d<\/p>\n
Private enterprises, he said, could probably make the companies more efficient and profitable, adding that the purpose of state-run firms was to serve the country.<\/p>\n
\u201cThe companies were formed because there was no private company that focused on the sector, but now there are plenty and they are more profitable than state-run firms,\u201d Didu said.<\/p>\n
The five industrial parks are :<\/p>\n
\u2022 PT Kawasan Berikat Nusantara, or the Nusantara Bonded Zone, which operates in the industrial zone in Cilincing, North Jakarta, near Tanjung Priok port. The central government owns 88.74 percent of the park, with the remainder owned by the Jakarta government.<\/p>\n
\u2022 PT Kawasan Industri Medan in Medan, North Sumatra, which provides land leases for small businesses. The central government owns 60 percent, the provincial government 30 percent and the Medan municipal government holds the rest.<\/p>\n
\u2022 PT Kawasan Industri Makassar in Makassar, South Sulawesi, is 60 percent owned by the central government, with the remaining shares held by local governments.<\/p>\n
\u2022 PT Kawasan Industri Wijayakusuma, located in the Cilacap region of Central Java, is 60 percent owned by the central government.<\/p>\n
\u2022 PT Pengusahaan Daerah Industri Pulau Batam, which is focused on development and investment in the Batam industrial area in Riau Islands province, is wholly owned by the central government.<\/p>\n
According to the SOE Ministry\u2019s financial report this month, the five parks had combined assets of more than Rp 900 billion, with a net profit of Rp 38.4 billion in 2008.<\/p>\n
The government expects net profit for the sector to hit Rp 77.6 billion by 2010.<\/p>\n
The ministry would ask for approval from the Finance Ministry and the House of Representatives before it proceeds with the sale, Didu said.<\/p>\n
\u201cWe\u2019ll sell the shares in an auction open to all companies,\u201d he said.<\/p>\n
He added that the central government was also open to the possibility that local governments could acquire the shares.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-plans-to-unload-industrial-park-stakes-1243399457", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }