Government raises $1.04b from privatization<\/p>\n
JAKARTA (JP): The government has raised US$1.04 billion from
\nits privatization program in the first five months of the
\n1999\/2000 fiscal year which ends in March.<\/p>\n
An assistant to the state minister of the empowerment of state
\nenterprises, Sofyan Djalil, said he was optimistic this fiscal
\nyear's target of $1.6 billion from the program would be realized.<\/p>\n
He said the government raised $215 million from the sale of
\nits shares in port operator Pelindo II and $173 million from
\nPelindo III.<\/p>\n
Additional revenue came from the sale of $119.3 million in
\nstock in food manufacturer PT Indofood Sukses Makmur and $409
\nmillion in PT Telkom, Sofyan said.<\/p>\n
He also said the government received $122.1 million from the
\nsale of 14 percent of cement manufacturer PT Semen Gresik to
\nMexican cement company Cemex SA.<\/p>\n
Sofyan added that after the privatization, Semen Gresik would
\nexport 3 million tons of cement in 1999, compared to 1.8 million
\ntons last year.<\/p>\n
He said the role of Cemex SA as a strategic partner in Semen
\nGresik helped open new export markets for the company, and it was
\nexpected that its exports would further increase to eight tons
\nper year.<\/p>\n
Last fiscal year's privatization proceeds only stood at about
\n$380 million, falling far short of the $1 billion target.<\/p>\n
Sofyan promised to announce by early next month whether the
\nplanned consolidation of 144 state firms into 10 holding
\ncompanies was going forward.<\/p>\n
The government named six foreign consultants in early August
\nto assist in analyzing the advantages and disadvantages of the
\nplanned consolidation.<\/p>\n
The foreign consultants are McKenzie & Co.,
\nPriceWaterhouseCoopers, Boston Consulting Group, A.T. Kerney,
\nBooz Allen & Hamilton Inc. and Ernst & Young.<\/p>\n
In the near future, the government also plans to sell some of
\nits shares in state airport operator Angkasa Pura II and state
\nplantation company PT Perkebunan IV, Sofyan said.<\/p>\n
"We are now in the final stages of negotiations with foreign
\ninvestors to privatize the two state firms," he said.<\/p>\n
Sofyan added that other state companies to be privatized by
\nthe government within this fiscal year were fertilizer
\nmanufacturers PT Pupuk Kaltim and PT Pusri, plantation company PT
\nPerkebunan III and international-call operator PT Indosat. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-raises-104b-from-privatization-1447893297",
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