Govt upbeat over privatization

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)