Privatization of PT Pupuk Kaltim<\/p>\n
The Director General of State Owned Enterprises (SOEs) stated
\nthat, to support the privatization of PT Pupuk Kaltim, in the
\nnear future the government would divest this company from PT
\nPusri. He also said, the privatization of 16 SOEs this year would
\nbe conducted through initial public offerings (IPO).<\/p>\n
According to the plan, the IPO of PT Pupuk Kaltim is expected
\nto raise funds of Rp 1.8 trillion, most of which would be
\ntransferred to the State Budget for 2001.<\/p>\n
For the present, amid the economic turbulence, any efforts
\nwhich contribute to the realization of the 2001 State Budget
\nshould be supported and in this case the role of the Director
\nGeneral of SOEs is crucial for the success of PT Pupuk Kaltim to
\nachieve the Rp 1.8 trillion, primarily by making every endeavor
\nto accelerate the divestment prior to PT Pupuk Kaltim obtaining a
\nstock exchange listing which is scheduled to be carried out in
\nApril of this year. Otherwise it could harm the intrinsic value
\nof PT Pupuk Kaltim's shares on the stock exchange.<\/p>\n
The acceleration of the divestment prior to the listing would
\nincrease the market price of Pupuk Kaltim's shares on the stock
\nexchange because, based on the consideration of efficiency,
\npracticability and flexibility, investors certainly would prefer
\na full SOE to a subsidiary.<\/p>\n
By being restored to their respective original legal status,
\neach of the fertilizer SOEs could enter into fair competition and
\nhave an opportunity to freely enhance their performance.<\/p>\n
Furthermore, the government through the Director General of
\nSOEs could appraise the ability of each board of directors of the
\nexisting fertilizer companies in operating its respective
\ncompany.<\/p>\n
In the era of open competition, the quality of leadership and
\ncapability of an executive is decisive for the success of an
\nenterprise and that is why the system of reward and punishment
\nshould be applied by the government to stimulate all the
\nmanagement of the existing fertilizer companies to yield greater
\nprofits.<\/p>\n
HASAN BASRI MUCHTAR<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/privatization-of-pt-pupuk-kaltim-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }