Privatization amounts to zero so far: Govt<\/p>\n
JAKARTA (JP): With four months remaining to help fill the
\ncountry's widening state budget deficit, the government admitted
\non Monday that proceeds from its privatization program have so
\nfar amounted to zero.<\/p>\n
Director general for state enterprises I Nyoman Tjager,
\nhowever, claimed his office would still be able to achieve the
\nfull privatization target of Rp 6.5 trillion (about US$680
\nmillion) in four months time.<\/p>\n
"The government will run its privatization program to reap a
\nbudget revenue of Rp 6.5 trillion, as stated under the Letter of
\nIntent (LoI) with the International Monetary Fund (IMF)," Nyoman
\nannounced during a media briefing.<\/p>\n
His optimism came despite the lingering reluctance of foreign
\ninvestors in Indonesia and a sluggish global economy curbing
\ninvestment growth.<\/p>\n
So far, the government has sold, via the stock market, the
\npharmaceutical firms, PT Indofarma and PT Kimia Farma.<\/p>\n
But their proceeds, Rp 100 billion for Indofarma and Rp 150
\nbillion for Kimia Farma, were not intended for the government,
\nNyoman said.<\/p>\n
"We were just testing the market at that time," he explained.<\/p>\n
The sale of Indofarma and Kimia Farma received a poor response
\nfrom the market, amid domestic political instability at the time,
\nanalysts said.<\/p>\n
The two companies were among 16 state firms earmarked for
\nprivatization this year.<\/p>\n
The Rp 6.5 trillion in privatization proceeds are expected to
\nhelp contain the state budget deficit at 3.7 percent of gross
\ndomestic product (GDP).<\/p>\n
But given the short time left, the government may repeat last
\nyear's poor privatization proceeds, which amounted to zero from
\nthe targeted Rp 6.5 trillion.<\/p>\n
Back then, the government blamed the result on the adverse
\ninvestment climate due to political instability. For this year,
\nNyoman cited similar reasons.<\/p>\n
Analysts said foreign investors remain wary over the country's
\npolitical outlook although Megawati Soekarnoputri's presidency
\nbrought some certainty.<\/p>\n
Monday's progress report on the privatization program has been
\none of six preconditional steps the government must meet prior
\nto the signing of a new LoI with the IMF.<\/p>\n
Among the state firms earmarked for sale are property firm PT
\nWisma Nusantara, surveyor company PT Sucofindo, plantation firm
\nPTPN III, retailer PT Sarinah, oil plantation firm PT Socfindo,
\ncoalmining company PT Tambang Batubara Bukit Asam, steelmaker PT
\nKrakatau Steel, Bank Mandiri.<\/p>\n
They belong to what the government called its most attractive
\nassets ready for sale.<\/p>\n
Nyoman also said he hoped to sell off a 10 percent to 14
\npercent stake in the publicly listed telecommunication firm PT
\nTelkom sometime this year. He did not gave a definite
\ntimetable.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/privatization-amounts-to-zero-so-far-govt-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}