Govt names seven more state companies to be listed this year

JAKARTA (JP): State Minister of Empowerment of State Enterprises Tanri Abeng published yesterday the preliminary list of seven state companies to be publicly listed this fiscal year and five publicly listed firms that will be subject to further divestment by the government.

The companies being prepared for initial public offering (IPOs) are PT Krakatau Steel (steel maker), PT Pelindo II and PT Pelindo III (port infrastructure and management), PT Jasa Marga (toll roads) PT Perkebunan Nusantara Nusantara IV (oil palm plantations), PT Tambang Batubara Bukit Asam (coal mining), and PT Angkasa Pura II (airport management).

The minister said the privatization program was part of the reform package agreed between the government and the International Monetary Fund (IMF) last week.

"We are still studying these 12 companies intensively. Before April 24, we will meet again with the President to ask for further directions as to whether these companies are ready for public listing," Tanri said after meeting with President Soeharto at his residence on Jl. Cendana, Central Jakarta.

The government agreed with the IMF last week that a target of seven new enterprises were to be identified for privatization in the 1998/1999 fiscal year and the list would be announced before April 24.

The transparent procedures will be established by June 30, for the divestiture and privatization in collaboration with the World Bank.

"The state firms do not have to offer shares directly through an IPO. They could invite strategic partners for a private placement of between 10 percent and 20 percent of the firms' equity," Tanri quoted the President as saying.

The President maintained that the government should remain the majority shareholder in the seven companies to be privatized with a minimum shareholding of 51 percent.

Tanri added that the government would make additional divestment in local telephone operator PT Telkom, satellite operator PT Indosat, cement producer PT Semen Gresik, tin mining firm PT Tambang Timah, nickel and gold mining company PT Aneka Tambang. PT Bank Negara Indonesia was excluded from the divestment program list without any explanation.

The minister underlined the government's commitment to carry out the divestment and privatization transparently.

"Everything must be done in a transparent manner and as agreed with the IMF," Tanri stressed. (prb)