Govt to sell 20% stake in IPTN

Govt to sell 20% stake in IPTN

JAKARTA (JP): State Minister for Research and Technology B.J. Habibie unveiled here yesterday the government's plan to sell around 20 percent of its shares in the state-owned IPTN aircraft industry.

Habibie, also the president of IPTN, said that the aircraft manufacturer's shares would be sold to foreign airplane manufacturers through a direct placement arrangement.

"The shares will be directly sold to airplane makers overseas," he said of the divestment plan.

The planned sale of stocks through a direct placement procedure will be more beneficial to IPTN as it will allow them to select all potential buyers, Habibie said.

"Selling shares to airplane manufacturers would, for example, not only bring in fresh funds but also technology," he said.

The planned sale of IPTN's shares is part of the government's privatization program, which will also include the sale of several other major state companies such as PT Telekomunikasi Indonesia, the provider of domestic telephone services, and Garuda Indonesia.

"IPTN's privatization will be carried out by the year 2000," he told newsmen before attending a limited cabinet meeting on the economy.

The privatization is needed to boost the capital and technology capability of the Indonesian aircraft industry, which he estimates will become one of the world's major producers of commuter airplanes in the next five years.

Habibie said that improving the capital structure and updating the technology of IPTN is crucial if they are to tap the growing demand for commuter airplanes in the world. (hen)