Govt's commitment to privatize state companies remains<\/p>\n
JAKARTA (JP): Director General for State-owned Enterprises,
\nBacelius Ruru, asserted yesterday the government remained
\nstrongly committed to privatizing state-owned companies in a bid
\nto improve their efficiency and strengthen their operations.<\/p>\n
But Ruru said that only one state company -- mining firm PT
\nAneka Tambang -- would be floated on the stock exchanges this
\nyear as the newly created directorate of privatization under his
\nsupervision was still preparing other potential firms for initial
\npublic offerings (IPOs).<\/p>\n
\"There are many others that are being prepared, such as (state
\nelectricity firm) PLN, Krakatau Steel and (toll road operator)
\nJasa Marga, but at the moment it is only Aneka Tambang, scheduled
\nfor the fourth quarter,\" Ruru told journalists on the sidelines
\nof an international capital market conference.<\/p>\n
He said issues pertaining to regulatory framework were
\nhindering the privatization of other state-owned companies,
\nparticularly those that enjoyed monopolies.<\/p>\n
The government viewed privatization as an important tool for
\nimproving public enterprises' performance, Ruru said.<\/p>\n
Both PLN and Jasa Marga are involved in monopolies, and the
\nregulatory framework for these sectors would have to be settled
\nbefore they could be privatized, Ruru added.<\/p>\n
He said the government had restructured the regulatory
\nframework of the telecommunications sector before it privatized
\nPT Telekomunikasi Indonesia (Telkom) and PT Indonesia Satellite
\nCorp (Indosat).<\/p>\n
\"As we prepare them for IPOs we are restructuring and
\nstreamlining the regulatory framework and that is why this year
\nit is only Aneka Tambang (that is being listed),\" Ruru said.<\/p>\n
According to Ruru, privatization of state companies through
\nthe stock exchanges not only raise fresh funds for the issuers
\nthemselves and the government (as the shareholder) but also
\nsubject company management to market discipline.<\/p>\n
\"Our experience confirms that privatization has improved the
\nmanagement and operations of state companies because the listing
\nrequirements, including the tough disclosure requirements, force
\nthem to be more transparent,\" Ruru noted earlier at the
\ninternational capital market conference.<\/p>\n
Jakarta Stock Exchange (JSX) president Cyril Noerhadi said
\nevery entrance of state firms into the capital market would
\ninject a fresh flood into the market.<\/p>\n
He said five state firms currently listed on the JSX --
\nIndosat, Telkom, tin miner PT Tambang Timah, cement producer PT
\nSemen Gresik and Bank Negara Indonesia 1946 -- accounted for 27
\npercent of the capitalization of all companies traded on the
\nexchange.<\/p>\n
\"Floating state firms' shares through the capital market has a
\npositive impact on the market. It gives an added value to the
\nmarket,\" Cyril said.<\/p>\n
\"So, we hope more state firms will go public,\" he added.
\n(rid\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govts-commitment-to-privatize-state-companies-remains-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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