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Thu, 02 Mar 2000

JP/Minister wants IBRA to coordinate sales program

Minister wants IBRA to coordinate sales program

JAKARTA (JP): State Minister of Investment and State Enterprise Development Laksamana Sukardi called on the Indonesian Bank Restructuring Agency (IBRA) to coordinate its assets sales program with the privatization plans of state enterprises to gain optimum results.

Laksamana indicated that the lack of coordination between the ministry and IBRA could crowd out the market and both agencies may be unable to achieve maximum earnings from the sale of the assets and the privatization program.

"The privatization of the shares in state enterprises and IBRA's (assets sales program) should be synchronized to avoid crowding out the market.

"BCA (Bank Central Asia) will be floated ... followed by state plantations and Astra International. How much can the market absorb? Thus, the two programs should be coordinated," Laksamana told reporters prior to a cabinet meeting at the state palace.

Laksamana earlier said his office had set a target of raising Rp 6.5 trillion through the privatization of eight state companies to help finance the deficit in the April-December state budget.

The companies scheduled for privatization are general mining company PT Aneka Tambang, airport operator PT Angkasa Pura II, coal mining company PT Bukit Asam, plantation companies PT Perkebunan Nusantara III and IV, fertilizer producer PT Pupuk Kaltim and pharmaceutical manufacturers PT Indo Farma and PT Kimia Farma.

The ministry's spokesman Riza Primadi said on Wednesday that the government wished to raise between Rp 1.8 trillion ($243 million) and Rp 2.1 trillion from the sale of 760 million shares, or 35 percent, of Pupuk Kaltim.

Meanwhile, IBRA has plans to raise some Rp 17 trillion this fiscal year ending March 31 to help finance the government's bank restructuring and recapitalization programs and Rp 19.5 trillion in the coming fiscal year.

One of the main assets to be sold this fiscal year is car manufacturer Astra Internasional, while Bank Central Asia is the main asset slated for sale in the next fiscal year. (jsk/prb)