Govt targets Rp 8 trillion in privatization of state firms

JAKARTA (JP): State Minister of Investment and State Enterprise Development Laksamana Sukardi said on Wednesday the government expected to raise Rp 8 trillion (US$1.1 billion) in funds from the privatization of state enterprises in the 2000 fiscal year.

Laksamana said the government had prioritized selling those state companies with small assets and huge debts.

He said the government would watch the market sentiment, and not sell the government's stake in state firms if the market was sluggish.

"We will try to maximize our profits," Laksamana said after inaugurating senior officials in his state ministry.

Laksamana said the government would therefore work on increasing the value of its companies through restructuring and reorganizing.

Meanwhile, Benny Pasaribu, the ministry's new deputy for mining, energy, strategic industries and telecommunications, said there were ways of selling state companies with small assets and huge debts.

"I think it's possible through careful studies. What is important is the price we offer," Benny, who is a legislator for the Indonesian Democratic Party of Struggle (PDI Perjuangan), said.

However, the government should not neglect the public interest when pricing state assets, he said.

"I am against the stand of simply selling state companies without heeding the function of the government and state firms as stated in the constitution," Benny said, citing article 33 of the constitution, which stipulates that Indonesia's resources should be used for the maximum benefit of the people.

Sixteen new senior officials were inaugurated yesterday, many of them officials from the Investment Coordinating Board (BKPM).

Former BKPM officials who retained their positions or were assigned to new positions include Bacelius Ruru, who is now deputy chairman for supervision and control, Hidayatullah Suralaga (deputy chairman for policy, planning and investment) Risaldi Kasri (deputy chairman for international relations and investment promotion), Andung Nitimihardja (deputy chairman for national business development) and Yus'an (deputy chairman for investment services and facilities).

New faces appointed as BPKM deputy chairpersons include Irsan Azhary Saleh, who is responsible for the financial sector and construction services, Budi Susetyo (logistic and tourism sectors), Benny Pasaribu (mines, strategic industries, energy and telecommunications sectors), Muwardi P. Simatupang (agribusiness, forestry, paper, printing and media sectors) and I Nyoman Tjager (restructuring and privatization of state firms).

In addition, Laksamana also installed new expert staff, including Soeroso who is assigned to advise Laksamana and the BKPM on macroeconomic issues, Bambang Hermanto (micro investment issues), Asril Noer (inter-institutional relations), Winarto (entrepreneurship and funding) and Riza Primadi (communications and the media). (03)