Govt's commitment to privatize state companies remains
Govt's commitment to privatize state companies remains
JAKARTA (JP): Director General for State-owned Enterprises,
Bacelius Ruru, asserted yesterday the government remained
strongly committed to privatizing state-owned companies in a bid
to improve their efficiency and strengthen their operations.
But Ruru said that only one state company -- mining firm PT
Aneka Tambang -- would be floated on the stock exchanges this
year as the newly created directorate of privatization under his
supervision was still preparing other potential firms for initial
public offerings (IPOs).
"There are many others that are being prepared, such as (state
electricity firm) PLN, Krakatau Steel and (toll road operator)
Jasa Marga, but at the moment it is only Aneka Tambang, scheduled
for the fourth quarter," Ruru told journalists on the sidelines
of an international capital market conference.
He said issues pertaining to regulatory framework were
hindering the privatization of other state-owned companies,
particularly those that enjoyed monopolies.
The government viewed privatization as an important tool for
improving public enterprises' performance, Ruru said.
Both PLN and Jasa Marga are involved in monopolies, and the
regulatory framework for these sectors would have to be settled
before they could be privatized, Ruru added.
He said the government had restructured the regulatory
framework of the telecommunications sector before it privatized
PT Telekomunikasi Indonesia (Telkom) and PT Indonesia Satellite
Corp (Indosat).
"As we prepare them for IPOs we are restructuring and
streamlining the regulatory framework and that is why this year
it is only Aneka Tambang (that is being listed)," Ruru said.
According to Ruru, privatization of state companies through
the stock exchanges not only raise fresh funds for the issuers
themselves and the government (as the shareholder) but also
subject company management to market discipline.
"Our experience confirms that privatization has improved the
management and operations of state companies because the listing
requirements, including the tough disclosure requirements, force
them to be more transparent," Ruru noted earlier at the
international capital market conference.
Jakarta Stock Exchange (JSX) president Cyril Noerhadi said
every entrance of state firms into the capital market would
inject a fresh flood into the market.
He said five state firms currently listed on the JSX --
Indosat, Telkom, tin miner PT Tambang Timah, cement producer PT
Semen Gresik and Bank Negara Indonesia 1946 -- accounted for 27
percent of the capitalization of all companies traded on the
exchange.
"Floating state firms' shares through the capital market has a
positive impact on the market. It gives an added value to the
market," Cyril said.
"So, we hope more state firms will go public," he added.
(rid/vin)