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)