10 firms prepared for privatization
JAKARTA (JP): Ten state-owned companies have been put on a primary list for privatization this year, according to an updated master plan to be issued by the Office of the State Minister of State Enterprises and Investment.
The companies are coal mining firm PT Tambang Batu Bara Bukit Asam, plantation firms PT Perkebunan Nusantara III and PT Perkebunan Nusantara IV, pharmaceuticals PT Indo Farma and PT Kimia Farma, fertilizer producer PT Pupuk Kaltim, general mining firm PT Aneka Tambang, airport operator PT Angkasa Pura II, surveyor PT Sucofindo and trading company PT Kerta Niaga.
"Stakes in these companies will be sold transparently through public offerings or direct placement to strategic partners," the office said in a statement.
It said preparations for the sales were now well advanced with several underwriters, financial and other advisers already appointed.
The sales of the companies are expected to raise about Rp 6.5 trillion (US$812 million) to help fill the deficit in the state budget.
If the proceeds from the sales of the companies' shares do not meet the target, the government has identified nine other state companies as candidates for the rapid privatization program to be held also this year.
The office acknowledged that its privatization program in previous years fell short of targets.
The nine companies which have been put on the standby list are PT Telkom and PT Indosat, retail store PT Sarinah, hotel management company JIHD, mining company PT Tambang Timah, strategic industry holding BPIS, fertilizer producer PT PUSRI and hotel and office operators PT Wisma Nusantara and PT Perhotelan dan Perkantoran Indonesia.
The office also said that the government attached particular priority to the restructuring and privatization of the telecommunications sector in a bid to attract massive new investment to help the companies extend their coverage, range and quality of services as well as maintain their international competitiveness.
An inter-ministerial team has been formed in order to guide and oversee the preparation of a detailed action plan on the restructuring and privatization of the telecoms sector.
It said the Ministry of Communications was now working to finalize the implementing regulations for the new Telecoms Law, which would be effective in September.
"The Ministry of Communications is also working to establish a medium term tariff policy and improved regulatory arrangements," it added.
It said it was now in the process of finalizing revisions to the master plan for the restructuring and privatization of the state-owned companies.
The updated master plan, which sets out the government's goals and policies on restructuring and privatization, will be launched by the end of June. (cst)