Non-business factors a hurdle for PTP listing<\/p>\n
JAKARTA (JP): Indonesia's state-owned plantation firms (PTP),
\nwhich have been criticized by the World Bank as inefficient,
\ncould go public if non-business factors could be overcome,
\naccording to one expert.<\/p>\n
Ridwan Dereinda, director of the Center for Agribusiness
\nDevelopment and Studies, told reporters yesterday that, from a
\nbusiness standpoint, the state plantations are fit to be listed
\non stock exchanges.<\/p>\n
\"But there are things under the surface which would have to be
\ndealt with first, such as the aspects of their human resources
\nand management systems,\" Ridwan told a seminar on the development
\nof human resources in the plantation sector in the globalization
\nera.<\/p>\n
Plans are currently being made to allow PTPs to go public, one
\nreliable source told The Jakarta Post yesterday, requesting
\nanonymity.<\/p>\n
The source said the listing of the PTPs might be conducted as
\nsoon as next year, in spite of the agriculture ministry's as-yet-
\nunfinished efforts to consolidate the firms.<\/p>\n
In May last year, the ministry reorganized the country's 32
\nPTPs into nine groups.<\/p>\n
The consolidation process, however, has yet to be completed.<\/p>\n
A number of observers, including the World Bank, say the delay
\nis mainly due to difficulties in consolidating the financial
\nrecords of the 32 PTPs and the existence of \"vested interests\" on
\nthe part of the state officials managing the firms.<\/p>\n
Minister of Agriculture Sjarifudin Baharsjah has denied this,
\nsaying that the consolidation process is proceeding smoothly.<\/p>\n
Politics<\/p>\n
Ridwan said that political and legal considerations could also
\nbe a reason for the delay.<\/p>\n
\"Regulations on the establishment of state-owned holding
\ncompanies are still unclear. It is also unclear how public
\nlisting can proceed if the terms between the holding company and
\nits subsidiaries are not yet fixed,\" he said.<\/p>\n
Ridwan said that, although it would be possible for the PTPs
\nto go public, such a decision should not be made hastily.<\/p>\n
\"I would say it should not be considered for the near future.
\nAnd people should not have high expectations about the proceeds
\nof such a listing making a significant contribution to national
\ndevelopment,\" he added.<\/p>\n
Recent estimates put the PTPs' total plantation area at 1.5
\nmillion hectares, 20 percent of which has been planted with sugar
\ncane, mostly in Java, while the remaining 80 percent is planted
\nwith tree crops, mainly palm oil and rubber.<\/p>\n
The latest available figures show that, in 1993, the PTPs
\nrecorded total sales of Rp 3.5 trillion (US$1.5 billion), of
\nwhich Rp 1.13 trillion was derived from exports. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/non-business-factors-a-hurdle-for-ptp-listing-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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