Govt pospones privatization itinerary<\/p>\n
JAKARTA (JP): The government has postponed the privatization
\nof PT Indosat, PT Aneka Tambang and Soekarno-Hatta Airport to the
\n1999\/2000 fiscal year, citing various technical reasons.<\/p>\n
But the government is committed to completing this fiscal year
\nthe privatization of Jakarta International Container Terminal
\n(JICT) and Terminal Peti Kemas Surabaya in East Java.<\/p>\n
The comments were made on Monday by Sofyan Djalil from the
\noffice of the state minister of the empowerment of state
\nenterprises.<\/p>\n
Sofyan said the government had extended the final bid deadline
\nfor the strategic sale of the government's stake in international
\ncall operator Indosat, to allow some changes in
\ntelecommunications regulations.<\/p>\n
He said the privatization of Indosat required the amendment of
\nthe telecommunications law \"in line with the Indonesian
\ntelecommunications industry blueprint\".<\/p>\n
\"In addition, the Ministry of Communications intends to issue
\nnew telecommunications licenses to both PT Telkom and Indosat
\nshortly.\"<\/p>\n
Telkom is a state-owned telecommunications firm which retains
\nthe domestic telephone monopoly.<\/p>\n
Sofyan said the government hoped to finalize the privatization
\nof Indosat by July.<\/p>\n
He said the government expected to complete the privatization
\nof nickel and gold mine operator Aneka Tambang by August.<\/p>\n
The delay in Aneka Tambang's deal was prompted by the
\ngovernment's decision to modify the company's privatization
\nstructure in order to \"align with the ongoing corporatization of
\nnickel and gold assets\".<\/p>\n
Both Indosat and Aneka Tambang are listed on the Jakarta Stock
\nExchange. Indosat stock price dropped Rp 300 to close at Rp
\n11,800 while Aneka Tambang stocks lost Rp 25 to close at Rp
\n1,475.<\/p>\n
In regard to Soekarno-Hatta Airport, Sofyan said the
\ngovernment had decided to defer the final bid deadline for the
\nairport from March 26 to April 20 \"in order to clarify pending
\nregulatory issues\".<\/p>\n
Sofyan said the government expected to finalize and sign
\nagreements with strategic investors for a stake in JICT, a unit
\nof PT Pelabuhan Indonesia (Pelindo) II, \"as soon as a definitive
\nagreement has been reached\".<\/p>\n
In February the government named Grosbeaks Pte Ltd, a unit of
\nHong Kong's Hutchison Whampoa, as the preferred bidder for a 49
\npercent to 51 percent stake in JITC.<\/p>\n
The government has yet to announce the proceeds from the JITC
\nsale. But Sofyan recently hinted that it may be in the vicinity
\nof more than US$200 million.<\/p>\n
Negotiations with a preferred bidder for a stake in Terminal
\nPeti Kemas Surabaya, a unit of PT Pelindo III, \"will begin
\nshortly\".<\/p>\n
However, the government is yet to announce the preferred
\nbidder for Terminal Peti Kemas Surabaya nor the expected revenue
\nfrom the deal.<\/p>\n
In the current fiscal year, the government has so far only
\nsold a 14 percent share in cementmaker PT Semen Gresik to
\nMexico's Cemex SA for $1.38 percent per share, raising $121.5
\nmillion.<\/p>\n
In addition, the government has sold 100 million of its 180
\nmillion shares in private food giant PT Indofood Sukses Makmur
\nfor Rp 500 billion ($56 million).<\/p>\n
The government initially planned to raise $1.5 billion during
\nthe current fiscal year through the privatization of 12 state-
\nowned companies. The target was later slashed to $1 billion,
\nmainly due to bearish market sentiment. The target would again be
\nrevised due to the delay in the privatization of Indosat and
\nAneka Tambang, Sofyan said.<\/p>\n
The privatization proceeds are expected to help finance the
\n1998\/1999 state budget, which faces a huge deficit due to
\nspending measures required to survive the economic crisis. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-pospones-privatization-itinerary-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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