Eight state companies to be privatized this year

JAKARTA (JP): The government will speed up the privatization of eight state companies to raise much-needed funds to help finance the deficit in the April-December state budget.

State Minister of Investment and State Enterprises Development Laksamana Sukardi said on Thursday that the privatization would be carried out either through an initial public offering or direct placement.

He said the government expected to raise some Rp 5.9 trillion from the privatization of the eight companies, which operate in a wide range of business activities.

The companies are general mining company PT Aneka Tambang, airport operator PT Angkasa Pura II, coal mining company PT Bukit Asam, plantation companies PT Perkebunan Nusantara III and IV, fertilizer producer PT Pupuk Kaltim and pharmaceutical manufacturers PT Indo Farma and PT Kimia Farma.

Speaking at a hearing with the House of Representatives, Laksamana said the eight companies were among the best managed state companies in the country. He believed the companies would be attractive to both local and foreign investors.

The government expects to raise Rp 8 trillion (US$1.1 billion) in funds from the privatization of state enterprises for the April-December budget.

"If there is a difficulty in selling stakes in the eight companies, the government might opt to sell its shares in the companies, which have already been listed in stock exchanges," he told the hearing.

The listed state companies include PT Indosat, PT Telkom Indonesia, Bank Negara Indonesia (Bank BNI), PT Timah and PT Aneka Tambang.

Laksamana, who is also the chairman of the Investment Coordinating Board, earlier said the government would further divest its shares in Indosat and Telkom by year-end. But the two companies are not included on the new privatization list. (hen)