Five plantation companies ready to go public: Minister

PARUNG PANJANG, West Java (JP): Shares in five state plantations companies are to be floated on stock exchanges this year, Minister of Forestry and Plantations Sumahadi said yesterday.

Sumahadi said he and the state minister of empowerment of state enterprises would jointly prepare the listing.

"We expect five state plantation companies whose performances are considered very healthy to be listed on the stock market later this year," Sumahadi said after helping to harvest agroforestry rice fields at state forestry firm Perum Perhutani's plantation in Parung Panjang, near Bogor, West Java.

He named PT Perkebunan Nusantara (PTPN) VI in North Sumatra, which produces crude palm oil, as one candidate but declined to reveal the other four.

The government has said it will float seven state firms' shares on stock exchanges this year.

There are currently 14 state plantation firms, PTPN I through XIV, which grow and produce various commodities, including palm oil, tea, rubber, sugar and coffee.

Of the 14 firms, five are categorized as very healthy, five healthy and four unhealthy.

Sumahadi said that poorly managed state plantation firms would be given two years to improve their performance or would be forced to merge with other firms or be liquidated.

"Two years from now, all state plantation and timber companies must have at least healthy status. Why should we maintain poorly managed state companies? The government cannot continue subsidizing ailing state firms," he said.

Besides the 14 state plantation firms, the Ministry of Forestry and Plantations also overseas six state timber companies PT Inhutani I through V and Perum Perhutani. All state timber companies are considered relatively sound.

Sumahadi reiterated there were no plans to sell state timber companies' shares to the public, because their main assets, the forest areas for which they hold a license to exploit, belonged to the government.

He also said that timber and plantation companies, -- both state and private firms -- had to allocate funds to develop agroforestry in their areas.

He added he would impose sanctions on timber and plantation companies which were halfhearted in developing agroforestry.

Agroforestry is one of the social forestry programs implemented by the Ministry of Forestry since early 1991 to improve the welfare of villagers living near timber estates and plantations.

Villagers are allowed to plant rice and other seasonal crops such as peanuts, corn, soybeans, watermelons, and spices in the forest concessions and plantation areas.

The head of the ministry's research and development agency, Toga Silitonga, said that around 39.96 tons of unhusked rice, or 3.3 tons per hectare, was harvested from the 12 hectares of paddy at the Parung Panjang plantation. (gis)