Govt upbeat over privatization

JAKARTA (JP): The government is optimistic that it will still be able to raise Rp 15 trillion (US$1.2 billion) from the privatization of state companies in this fiscal year despite a delay in the sale of its stake in PT Telkom, a senior official said here yesterday.

Sofyan Djalil, an official from the State Ministry of the Empowerment of State Enterprises, said proceeds from the sale of government stakes in 11 other state companies would be more than enough to raise the target of Rp 15 trillion.

The government initially planned to divest its stake in 12 state companies including PT Telkom in the 1998/1999 fiscal year to finance the state budget.

"I think the Telkom privatization plans were delayed because it needs to overcome its technical problems first," Sofyan told The Jakarta Post.

However he declined to elaborate on what technical problems the company is currently facing.

"I do not know the details about the company's technical problems," he said.

Analysts have said divestment of the stake in Telkom was delayed due to unfavorable market conditions.

The privatization of other 11 state companies would continue, Sofyan added.

The 11 companies are PT Indosat, PT Tambang Timah, PT Aneka Tambang, PT Tambang Batubara Bukit Asam, PT Jasa Marga, PT Angkasa Pura II, PT Pelabuhan Indonesia II, PT Pelabuhan Indonesia III, PT Perkebunan Nusantara IV, PT Krakatau Steel and PT Semen Gresik.

Several foreign companies are currently bidding for the government's 35 percent stake in PT Semen Gresik, which is listed on the Jakarta Stock Exchange (JSX). (aly)