Krakatau Steel to be privatized next year<\/p>\n
BANDUNG (JP): PT Krakatau Steel, the state-owned steel
\nproducer based in Cilegon, West Java, will go ahead with its
\nprivatization next year.<\/p>\n
PT Bahana Prakarya Industri Strategies (BPIS), the holding
\ncompany of the country's largest steel producer, said
\nimprovements in the company's financial performance in the last
\nthree years had encouraged the steel company to go ahead with its
\ndelayed privatization.<\/p>\n
BPIS president Surasno Paramajuda said Krakatau Steel's
\nprofits rose significantly to Rp 300 billion in 2000 from Rp
\n212.24 billion in the previous year.<\/p>\n
The company's profit, which was only about Rp 164.23 billion
\nin 1997, jumped to Rp 351.29 billion in 1998 due to the sharp
\ndepreciation of the rupiah against the U.S. dollar. Its profit,
\nhowever, dropped to 212.24 billion in 1999.<\/p>\n
Surasno said the company's financial improvement had also
\nincreased the company's book value.<\/p>\n
The government initially planned to privatize Krakatau Steel
\nin 1998, but the plan was delayed due to its low market value and
\nthe unfavorable condition in the stock market.<\/p>\n
According to the assessment of independent appraising
\ncompanies, Krakatau Steel's market value was only Rp 2.5 trillion
\nin 1996 and Rp 4.4 trillion in 1997.<\/p>\n
\"We had proposed to the government two months ago to renew the
\nappraisal,\" he said.<\/p>\n
He said the steel company needed US$300 million in fresh funds
\nto replenish existing production facilities. Such improvement is
\nneeded before the company can be offered to investors, he added.<\/p>\n
According to him, Krakatau Steel is the best among 10
\ncompanies under BPIS.<\/p>\n
BPIS also supervises aircraft manufacturer PT Industri Pesawat
\nTerbang Nusantara (IPTN); ship manufacturer PT Pal; weapons and
\nammunition producer PT Pindad; explosives producer PT Dahana;
\ntrain manufacturer PT Industri Keretaapi (Inka); heavy industry
\ncompany PT Barata Indonesia; industrial equipment manufacturer PT
\nBoma Bisma Indra (BBI); telecommunications manufacturer PT
\nIndustri Telekomunikasi (Inti); and electronic component producer
\nPT Len. (05\/25)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/krakatau-steel-to-be-privatized-next-year-1447893297",
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"sponsor": "Okusi Associates",
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