Govt to sell three more SOEs<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Less than four months away from year-end, the government
\nremains confident it will be able to meet its privatization
\ntarget for this year, betting on successful sales of stakes in
\nthree large state-owned companies.<\/p>\n
Mahmudin Yasin, a deputy to the state minister for state
\nenterprises, said on Wednesday the government expected to rake in
\nsome Rp 3.7 trillion from the planned sales of stakes in Bank
\nRakyat Indonesia (BRI), gas distributor Perusahaan Gas Negara
\n(PGN) and cement maker Indocement Tunggal Prakasa.<\/p>\n
The government aims to receive a total of Rp 6.1 trillion from
\nthe privatization program this year; thus far, it has collected
\nabout Rp 2.5 trillion, which has come entirely from the sale of a
\n20 percent stake in Bank Mandiri through an initial public
\noffering (IPO).<\/p>\n
The sale of stakes in BRI and PGN is expected to generate Rp
\n1.5 trillion in proceeds from each, while the sale of a 17
\npercent stake in Indocement is expected to bring in another Rp
\n700 billion.<\/p>\n
The government has been relying heavily on proceeds from the
\nprivatization program for years to help plug the state budget
\ndeficit, despite the fact that the program has often sparked
\nstrong criticism from many politicians.<\/p>\n
The government argues that aside from providing contributions
\nto the state budget, the privatization program will allow state-
\nowned enterprises, most of which are notorious for their corrupt
\nculture, to perform better, to international corporate standards.<\/p>\n
However, owing to a combination of stiff public opposition and
\na lack of preparation by the government, progress on the program
\nhas thus far remained slow.<\/p>\n
This is evident from the government's recent decision to
\nrevise downward the proceeds target from the program from Rp 8
\ntrillion to Rp 6.1 trillion.<\/p>\n
According to Minister of Finance Boediono, the government has
\nno choice but to scale down the target, following its failure to
\nsell three other state companies that had been slated for sale
\nthis year.<\/p>\n
They are: pharmaceutical companies Kimia Farma and Indo Farma
\nand airport operator Angkasa Pura II, which runs the country's
\nlargest airport, Soekarno-Hatta International.<\/p>\n
In 2004, the government hopes to raise Rp 10 trillion from
\nselling state-owned enterprises, as stated in its draft 2004
\nstate budget.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-sell-three-more-soes-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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