DSTP seeks better way to go public

JAKARTA (JP): PT Dua Satu Tiga Puluh (DSTP), a company set up by the government to finance a US$2 billion project to produce jet planes that will be built by state-owned aircraft manufacturer PT IPTN, is looking for a better way to sell its shares to the public.

DSTP president Saadilah Mursjid said yesterday that individual investors need to be encouraged to buy shares.

"The par value of the company's shares should, for example, be lowered so that individuals can afford them," he said before a cabinet meeting on the economy.

He said the company is also formulating a system to better market shares in the provinces.

DSTP was set up in February with an initial paid-up capital of Rp 920 billion to finance construction of the 100-seater N-2130 jets. The capital was then increased to Rp 4.6 trillion to ensure that the company would have sufficient funds to finance the jet project.

President Soeharto owns 44,950 priority shares worth Rp 103.38 billion, while nine tycoons own 45,000 priority shares worth Rp 103.5 billion.

A number of state-owned companies have expressed their intention to buy into DSTP. Twenty-one state firms overseen by the Ministry of Industry and Trade have pledged to buy DSTP shares worth Rp 70 billion ($30 million).

Minister of Agriculture Sjarifudin Baharsjah said that state firms overseen by his office will contribute Rp 73 billion to the project. In addition, state firms overseen by the Ministry of Forestry will also spend $15.1 million in the jet project.

A few weeks ago, President Soeharto, in his capacity as DSTP chairman, called on regents and mayors in the country's 27 provinces to encourage the people in their respective areas to take part in financing the jet project.

Saadilah said that the ideal par value of DSTP's shares should be set between Rp 5,000 and Rp 1,000 per share.

He said that sales of the company's shares to individual investors will be carried out through local banks. (hen)