State enterprises' privatization plan unaltered: Rozy<\/p>\n
JAKARTA (JP): Newly appointed State Minister of Investment and
\nState Enterprises Development Rozy Munir said on Tuesday his
\noffice's privatization program would go ahead as scheduled.<\/p>\n
He said the government's commitment to privatize eight state
\ncompanies was unaltered despite the change in his office's
\nleadership.<\/p>\n
Rozy, who was appointed last week to replace Laksamana
\nSukardi, said however the government would only sell up to 49
\npercent of the state companies' total shares. He was formerly
\nLakasamana's deputy.<\/p>\n
\"From each company on the privatization list, we would only
\nsell up to 49 percent of its total shares, thus the government
\nwould remain the majority shareholder,\" Rozy said in a media
\nbriefing.<\/p>\n
The companies ready for privatization are general mining
\ncompany PT Aneka Tambang, airport operator PT Angkasa Pura II,
\ncoal mining company PT Bukit Asam, plantation companies PT
\nPerkebunan Nusantara III and IV, fertilizer producer PT Pupuk
\nKaltim and pharmaceutical manufacturers PT Indo Farma and PT
\nKimia Farma.<\/p>\n
The government expects to raise about Rp 6.5 trillion to help
\nfill the gap in the April-December fiscal year state budget.<\/p>\n
His deputy I Nyoman Tjager said the eight state companies were
\nrequired to submit a comprehensive business analysis to the
\noffice within one month to two months.<\/p>\n
\"The method of the privatization is subject to the business
\nanalysis of the respective state company,\" he said.<\/p>\n
Nyoman said the privatization program would be carried out
\neither through an initial public offering (IPO) or a direct
\nplacement to strategic partners.<\/p>\n
Nyoman said the eight state companies all booked positive net
\nincome in 1999.<\/p>\n
\"It's not a huge profit. But when companies manage to book
\nprofit even in times of an economic crisis, we are talking about
\na good business prospect ahead,\" he said.<\/p>\n
\"The company's assets and business prospects are what we are
\ntrying to sell to investors.\"<\/p>\n
The state companies registered between Rp 100 billion and Rp
\n420 billion net incomes for 1999, according to their respective
\nfinancial statements.<\/p>\n
No estimates were available on how much each of the eight
\nstate companies would contribute to the total Rp 6.5 trillion
\nprivatization target, said Nyoman.<\/p>\n
\"We will determine such details later on. But of course there
\nis flexibility in the case so that the Rp 6.5 trillion target
\ncould not yet be fully covered by this privatization.\" He noted
\npositive market sentiment was necessary for good priced assets.<\/p>\n
If there was a difficulty in selling stakes in the eight
\ncompanies, the government would restrict the sale of shares to
\nthose firms already listed on stock exchanges, he added.<\/p>\n
The listed state companies are PT Indosat, PT Telkom
\nIndonesia, Bank Negara Indonesia (BNI), PT Timah and PT Aneka
\nTambang. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-enterprises-privatization-plan-unaltered-rozy-1447893297",
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