Govt to privatize 10 state-owned firms<\/p>\n
JAKARTA (JP): The government will sell stakes in 10 state-
\nowned companies in the 1999\/2000 fiscal year to raise Rp 13
\ntrillion (US$1.5 billion) to help finance the state budget, State
\nMinister of the Empowerment of State Enterprises Tanri Abeng said
\non Monday.<\/p>\n
But realization of the plan will hinge largely on the
\ncountry's social and political situation, he added.<\/p>\n
"I'm confident that the privatization target can be obtained
\nas long as the social, political condition doesn't get worse," he
\ntold the House of Representatives' Commission VIII on state
\nbudget and finance at a hearing on the plan.<\/p>\n
He identified the firms as publicly listed tin miner PT
\nTambang Timah, telecommunications firm PT Telkom, nonlisted toll
\nroad operator PT Jasa Marga, coal mining operation PT Tambang
\nBatubara Bukit Asam, steelmaker PT Krakatau Steel, fertilizer
\nmanufacturers PT Pupuk Sriwijaya and PT Pupuk Kaltim, airport
\nmanagement firm PT Angkasa Pura I, plantation company PT
\nPerkebunan Nusantara III and port operator PT Pelabuhan Indonesia
\nI.<\/p>\n
Tanri said the government would also sell a 23 percent share
\nin publicly listed cement maker PT Indocement Tunggal Prakarsa in
\nthe fiscal year.<\/p>\n
He did not provide further details. The government has a 25
\npercent stake in the private cement company.<\/p>\n
The first five companies were originally slated for
\nprivatization in the current fiscal year ending in March. The
\nplan was postponed due to bearish market sentiment from the
\neconomic crisis plaguing the region since mid-1997.<\/p>\n
Tanri believed overseas road shows for the privatization
\ncandidates could start in April.<\/p>\n
"I myself will be leading the road shows," he said.<\/p>\n
Tanri was optimistic the $1 billion target for privatization
\nproceeds in the current fiscal year could be obtained.<\/p>\n
He said final bids for two container terminals owned by PT
\nJakarta International Container Terminal (JICT), a subsidiary of
\nstate-owned port operator PT Pelindo II, were received from four
\ngiant foreign shipping and port operators.<\/p>\n
Final bids were submitted by noon on Monday.<\/p>\n
Tanri declined to name the bidders but disclosed they came
\nfrom Hong Kong, Australia, the U.S., and the Philippines.<\/p>\n
Announcement of the winner is scheduled on Wednesday evening.<\/p>\n
The government announced in November that six foreign
\ninvestors were vying for a 49 percent-51 percent stake in JICT.<\/p>\n
The latter controls two container terminals with a total
\ncapacity of 1.5 million twenty-foot equivalent units (TEUs) in
\nthe country's busiest port, Jakarta's Tanjung Priok.<\/p>\n
The winner is expected to boost port capacity to 2.7 million
\nTEUs to compete with the popular Singapore port.<\/p>\n
Tanri said the selling process for another port operator, PT
\nPelindo III, airport management firm PT Angkasa Pura II,
\nplantation firm PT Perkebunan IV and publicly listed
\ninternational telecommunications company PT Indosat was still
\nunderway.<\/p>\n
He said regulations on the tariff mechanism in the
\ninfrastructure operations were settled.<\/p>\n
Australia's Telstra is among candidates interested in Indosat,
\nhe added.<\/p>\n
"The bidders will submit their bids next week," he said.<\/p>\n
The government is expected to sell a 14 percent to 15 percent
\nstake in Indosat.<\/p>\n
The government has so far only sold a 14 percent share in
\ncementmaker PT Semen Gresik in the current fiscal year to
\nMexico's Cemex SA for $1.38 percent per share, raising $114
\nmillion.<\/p>\n
Tanri said Cemex recently gave a bonus of $7.5 million
\nfollowing approval of Gresik's business plans by its board of
\ncommissioners, raising total proceeds from the sale to $121.5
\nmillion.<\/p>\n
"This was part of our deal with Cemex," he said. (rei)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-to-privatize-10-state-owned-firms-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }