Govt to privatize Bukit Asam<\/p>\n
JAKARTA (JP): The government expects to sell some of its
\nshares in coal mining company PT Tambang Batubara Bukit Asam to
\nstrategic partners by September this year as part of the
\ncompany's privatization program, a senior government official
\nsaid.<\/p>\n
Director general for state enterprises at the Ministry of
\nFinance I Nyoman Tjager said on Thursday after selling shares to
\nstrategic partners, the government would sell some shares to the
\npublic.<\/p>\n
\"Once (market) conditions improve, we'll do an initial public
\noffering, which may take place one to two years from now,\" Nyoman
\nwas quoted as saying by Antara.<\/p>\n
Under this year's privatization program, the government has to
\nsell up to 49 shares in Bukit Asam.<\/p>\n
But, Nyoman said, the government was still undecided about the
\namount of shares it would divest to strategic partners, as it was
\nstill evaluating Bukit Asam's value.<\/p>\n
\"Once the evaluation is completed, we'll know how much we want
\nto divest this year, and how much the proceeds will be,\" he
\nexplained.<\/p>\n
The coal company control coal reserves amounting to 6.7
\nbillion metric tons, with an annual output of around 10 million
\ntons.<\/p>\n
Around 84 percent of Bukit Asam's 6.7 billion tons of coal
\nreserves are located in Tanjung Enim, South Sumatra, while the
\nremaining is spread over the Ombilin and Sawahlunto areas in West
\nSumatra, and the Cerenti area in Riau.<\/p>\n
The privatization of Bukit Asam has sparked concerns among
\nsome legislators, who said the company's coal reserves were vital
\nto the country's energy supply.<\/p>\n
Bukit Asam supplies coal for the Suralaya power plant in West
\nJava, which accounts for 30 percent of electricity supplies to
\nthe Java and Bali islands.<\/p>\n
Legislators noted that the future private owner of Bukit Asam
\ncould defer the contracted coal supply to Suralaya, if export
\nprices were more favorable.<\/p>\n
This possibility would put the Java-Bali power supplies at
\nrisk, they said.<\/p>\n
Bukit Asam sells around 70 percent of its coal to Suralaya and
\nexports the rest to Malaysia, the Phillipines and Thailand.<\/p>\n
Bukit Asam is one of 16 state firms slated for privatization
\nthis year. The government hopes to reap some Rp 6.5 trillion
\n(about US$570 million) in privatization proceeds needed to plug a
\nwidening state budget deficit. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-privatize-bukit-asam-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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