Govt soon to sell Bukit Asam stake

Govt soon to sell Bukit Asam stake

JAKARTA: The Indonesian government plans to sell a 20 percent stake in coal mining company PT Tambang Batu Bara Bukit Asam within the next three weeks, a senior government official said Tuesday.

"We plan to sell the stake through a private placement," said Deputy State Enterprises Minister Mahmuddin Yasin.

The government will soon name an investment bank to act as a bookrunner for the stake sale, he said. PT Mandiri Sekuritas, PT Danareksa Sekuritas and PT Bahana Securities have been shortlisted, he added.

The government plans to use the sale proceeds to narrow its budget deficit.

He didn't say how much the government might rise from the stake sale.

The government has so far received around Rp 3 trillion (US$349 million) from selling an additional 10 percent stake in PT Bank Mandiri and a 24.5 percent stake in small state-owned construction companies PT Adhi Karya, he said.

The government hopes to raise Rp 5 trillion from its privatization program this year. -- Dow Jones