Govt expects to sell BNI, BTN next year

Govt expects to sell BNI, BTN next year

Dow Jones, Jakarta

Indonesia's is planning to sell stakes in heavyweight PT Bank Negara Indonesia and unlisted PT Bank Tabungan Negara next year, a minister told reporters on Wednesday.

"The two banks are on the list for sale," said State Enterprise Minister Laksamana Sukardi.

He didn't give any other details.

The sale of the two banks is part of the government's effort to cover its 2004 budget deficit which is expected at around Rp 24.9 trillion (US$2.95 billion) next year.

The government currently has a 99.12 percent stake in BNI and 100 percent stake in Bank Tabungan.

Besides the sale of BNI and Bank Tabungan, the government has earlier said it plans to sell majority stakes in PT Bank Permata in February next year.

For this year, the government has said it plans to sell majority stakes in PT Bank Lippo and PT Bank Internasional Indonesia by November.

It has also said it plans to sell up to 30 percent in unlisted state-owned PT Bank Rakyat Indonesia through an initial public offering in September this year.

The proceeds from selling the stakes in the banks this year will be used to cover its 2003 budget deficit which is expected to reach Rp 34.4 trillion.