Pelindo unit sale not undervalued, says govt official<\/p>\n
JAKARTA (JP): The government denied on Monday allegations that
\nthe sale of PT Jakarta International Container Terminal, a unit
\nof state-owned port operator PT Pelindo II, to Hong Kong's
\nHutchison Whampoa was undervalued.<\/p>\n
A senior official at the State Ministry of the Empowerment of
\nState Enterprises, Sofyan Djalil, said the privatization deal was
\nthe best offer the government received due to the bearish market.<\/p>\n
\"In terms of price earning ratio, the transaction was much
\nbetter than that made by other leading port operators,\" he told
\nThe Jakarta Post. The deal was much higher than that made by
\nRotterdam Port, which has a larger capacity, he said.<\/p>\n
He declined to disclose additional details, saying they would
\nbe released as soon as the transfer was completed.<\/p>\n
Earlier, a government source told the Post the government had
\nonly received some $200 million from the sale of a 51 percent
\nstake in JICT to Grosbeak, a unit of Hutchison Whampoa.<\/p>\n
JICT is the management company of Indonesia's busiest port in
\nTanjung Priok. The company is a unit of state-owned PT Pelindo
\nII, targeted for government privatization in the 1998\/1999 fiscal
\nyear.<\/p>\n
Legislators Paskah Suzetta and Uray Faisal Hamid expressed
\nconcern at the weekend that the privatization of Pelindo II as
\nwell as Pelindo III -- which is currently underway -- was not
\ntransparent and that the sale of JICT was undervalued.<\/p>\n
Sofyan, however, said it was impossible for the government to
\nfully disclose the Pelindo II transaction until a final deal was
\nsigned because it involved a foreign publicly listed company, in
\nwhich a preliminary announcement would have a significant impact
\non the price of its listed shares.<\/p>\n
\"But I can assure you that the privatization process is being
\nconducted transparently, competitively and is auditable,\" he
\nsaid.<\/p>\n
The government failed to reach its privatization target in the
\nfiscal year ending in March.<\/p>\n
A government source said only $381 million could be raised
\nduring the fiscal year, less than half the target figure of $1
\nbillion.<\/p>\n
The proceeds come from the sale of the government's stake in
\nPelindo II, cement maker PT Semen Gresik and in publicly listed
\ninstant noodle maker PT Indofood Sukses Makmur.<\/p>\n
The government announced last week that the sale of government
\nshares in state-owned international telecommunications company PT
\nIndosat would be delayed until the 1999\/2000 fiscal year because
\nnew telecommunications regulations were not yet finalized. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pelindo-unit-sale-not-undervalued-says-govt-official-1447893297",
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