Govt to divest shares in 28 firms

Govt to divest shares in 28 firms

The government plans to sell its controlling stake in 19 state-owned firms this year as part of its continuing privatization program, an official said on Thursday.

The government will also sell its minority holding in nine other firms, said Parikesit Suprapto, an assistant deputy for privatization at the Office of State Minister of State Enterprises.

"The plan is to sell government shares in 28 companies this year but this is still subject to approval from parliament," he told AFP.

He declined to say how much the government expects to raise or to name the companies.

The ministry's budget target is Rp 5 (US$590 million) in privatization proceeds this year to help reduce the state budget deficit.

Meanwhile, reports said that the government has canceled an earlier plan to sell a controlling 51 percent stake in the publicly-listed Bank Negara Indonesia (BNI) to strategic investors due to widespread protest.

The government has now decided to sell a 30 percent stake in the country's second largest bank by assets to public investors in the stock market.

The divestment of the BNI shares is part of this year's privatization program, and is also expected to raise cash for the bank whose capital condition has been negatively affected by a huge lending scandal case. -- AFP