Indosat's overseas listing will promote Indonesian profile
<p>Indosat's overseas listing will promote Indonesian profile</p><p> JAKARTA (JP): The planned listing of the state-owned PT
Indosat will not only help the Indonesian government raise funds,
but will also place the country on the world's financial map, an
executive of a leading international underwriting firm said.</p><p>Peter Clarke, chairman of Merrill Lynch Limited for the Asia-
Pacific Region, said here yesterday that the spotlight gained by
Indosat from its offshore listing will indirectly bring the eyes
of the world to Indonesia. </p><p>"This will put Indonesia right in the hands of leading
investors," he said, adding that the exposure for Indonesia will
attract more foreign investors to tap the country's economic
potential.</p><p>He said Chile, Argentina, Brazil and China have become more
popular among leading investors since some of their companies
listed on the New York Stock Exchange.</p><p>"The Indonesian privatization program will raise the profile
of Indonesia on international markets, and thus allow the private
sector to capitalize on its success," he told business executives
at a seminar on strategic financial alternatives. </p><p>Speakers at the seminar, which was officially opened by
Minister of Finance Mar'ie Muhammad, included Central Bank
Governor J. Soedradjad Djiwandono; Winarto Soemarto, the
president of the state-owned Bank Negara Indonesia (BNI); Rini
M.S. Soewandi, the financial director of Astra International, and
Rizal Ramli, the managing director of the Econit business
consulting company.</p><p>Clarke, however, warned that the government should be very
selective in choosing the first state company to "go
international." </p><p>Reputation</p><p> If the listing of the first company is not successful, the
country's economic reputation will be damaged, he said.</p><p>The first company to go international must be of high quality
in order to set a good precedent for future transactions, he
said, adding that Indosat, the company providing international
telecommunication services, and PT Telkom, the domestic
telecommunication service company, will help achieve the
objectives as they will benefit from the strong demand for
international telecommunication stocks.</p><p>Merrill Lynch is one of 10 international underwriting
companies which are now competing to become the lead underwriter
of Indosat, which will float 35 percent of its shares on the New
York Stock Exchange in November. </p><p>Other state-owned companies, including the national flag
carrier Garuda Indonesia, the state oil firm, Pertamina, Telkom
and subsidiaries of the State Electricity Company (PLN).</p><p>Touching on the development of the country's capital market,
Clarke said that most investors perceive Indonesia as "value-
oriented" market, particularly in comparison to other Southeast
Asian markets.</p><p>"Merrill Lynch maintained a positive rating on the market and
recommends overweight asset allocation," he said, adding that his
company's confidence is based on the promising Indonesian
economy.</p><p>The real growth of the country's economy is expected to reach
seven and eight percent in 1994 and 1995, respectively, while
inflation is expected to fall to seven or eight percent from over
nine percent in each of the last two years, he said.</p><p>Clarke said the country's buoyant economic prospects will have
a positive impact on the local capital market and will also
incite a positive response from the world's investors to the
partial privatization of state-owned companies on international
markets. (hen)</p>
Indosat will not only help the Indonesian government raise funds,
but will also place the country on the world's financial map, an
executive of a leading international underwriting firm said.</p><p>Peter Clarke, chairman of Merrill Lynch Limited for the Asia-
Pacific Region, said here yesterday that the spotlight gained by
Indosat from its offshore listing will indirectly bring the eyes
of the world to Indonesia. </p><p>"This will put Indonesia right in the hands of leading
investors," he said, adding that the exposure for Indonesia will
attract more foreign investors to tap the country's economic
potential.</p><p>He said Chile, Argentina, Brazil and China have become more
popular among leading investors since some of their companies
listed on the New York Stock Exchange.</p><p>"The Indonesian privatization program will raise the profile
of Indonesia on international markets, and thus allow the private
sector to capitalize on its success," he told business executives
at a seminar on strategic financial alternatives. </p><p>Speakers at the seminar, which was officially opened by
Minister of Finance Mar'ie Muhammad, included Central Bank
Governor J. Soedradjad Djiwandono; Winarto Soemarto, the
president of the state-owned Bank Negara Indonesia (BNI); Rini
M.S. Soewandi, the financial director of Astra International, and
Rizal Ramli, the managing director of the Econit business
consulting company.</p><p>Clarke, however, warned that the government should be very
selective in choosing the first state company to "go
international." </p><p>Reputation</p><p> If the listing of the first company is not successful, the
country's economic reputation will be damaged, he said.</p><p>The first company to go international must be of high quality
in order to set a good precedent for future transactions, he
said, adding that Indosat, the company providing international
telecommunication services, and PT Telkom, the domestic
telecommunication service company, will help achieve the
objectives as they will benefit from the strong demand for
international telecommunication stocks.</p><p>Merrill Lynch is one of 10 international underwriting
companies which are now competing to become the lead underwriter
of Indosat, which will float 35 percent of its shares on the New
York Stock Exchange in November. </p><p>Other state-owned companies, including the national flag
carrier Garuda Indonesia, the state oil firm, Pertamina, Telkom
and subsidiaries of the State Electricity Company (PLN).</p><p>Touching on the development of the country's capital market,
Clarke said that most investors perceive Indonesia as "value-
oriented" market, particularly in comparison to other Southeast
Asian markets.</p><p>"Merrill Lynch maintained a positive rating on the market and
recommends overweight asset allocation," he said, adding that his
company's confidence is based on the promising Indonesian
economy.</p><p>The real growth of the country's economy is expected to reach
seven and eight percent in 1994 and 1995, respectively, while
inflation is expected to fall to seven or eight percent from over
nine percent in each of the last two years, he said.</p><p>Clarke said the country's buoyant economic prospects will have
a positive impact on the local capital market and will also
incite a positive response from the world's investors to the
partial privatization of state-owned companies on international
markets. (hen)</p>