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)