Five plantation companies ready to go public: Minister
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)