Govt expects to raise Rp 15t from privatization
Govt expects to raise Rp 15t from privatization
JAKARTA (JP): The government projects it will raise Rp 15
trillion (US$1.87 billion) from its divestment in 12 state
companies during the 1998/1999 fiscal year, a senior official
said yesterday.
Most of the privatization proceeds will be used to supplement
the state budget, Director General of State Enterprises Bacelius
Ruru added.
"The total proceeds from the share sales have yet to be
determined, but I think it will be in the neighborhood Rp 15
trillion," he told reporters at a leadership forum organized by
the Center for Corporate Leadership.
Ruru declined to specify which of the state companies would be
put on the market first, saying that preparations were
continuing, including the need to appoint a financial consultant
to advise the government on the privatization process.
The criteria for selecting a consultant is currently being
discussed with the World Bank, he said, adding that the decision
would be made soon so that a blueprint on Indonesia's
privatization scheme could be completed before the end of
September.
State Minister of the Empowerment of State Enterprises Tanri
Abeng announced Tuesday seven state companies to be privatized
soon either through initial public offerings or private placement
by inviting strategic investors.
The companies being prepared for privatization are steelmaker
PT Krakatau Steel, port infrastructure and management companies
PT Pelindo II and PT Pelindo III, toll road company PT Jasa
Marga, palm oil plantation company PT Perkebunan Nusantara IV,
coal mining company PT Batubara Bukit Asam and airport management
firm PT Angkasa Pura II.
The government also will make additional divestments in five
state companies already listed on stock exchanges. They are local
telephone operator PT Telkom, international telecommunications
firm PT Indosat, cement maker PT Semen Gresik, tin mining company
PT Tambang Timah and nickel and gold mining company PT Aneka
Tambang.
Ruru indicated that the proceeds from the share sales would be
used mainly to help cover the 1998/1999 budget deficit, which is
estimated at 3.2 percent of the gross domestic product.
The budget deficit will be generated mainly by subsidy
spending on staple foods, fuel, electricity, medicines and
credits for cooperatives and small and medium-sized enterprises.
Zafer Achi, who is president director of the Booz, Allen &
Hamilton Jakarta office and one of the speakers in yesterday's
forum, said his consulting firm was interested in being involved
in Indonesia's privatization program.
Achi said his firm had substantial experience in
privatization, mentioning British Airways as an example.
He added that his firm had also been appointed to advise South
Korea in dealing with the country's monetary crisis. (rei)