New directorate to spur privatization program

JAKARTA (JP): The government has established a new directorate general at the ministry of finance to manage the privatization of state-owned companies in Indonesia.

Ministry of Finance spokesman Agus Haryanto said yesterday that the new directorate would prepare state-run companies which have the potential to enter the privatization program by means such as selling some of their shares to the public.

"This new additional working unit was set up based on the recent 'go public' experience of several state companies which required special handling," Haryanto said.

Five state-run companies have been listed on the Jakarta Stock Exchange (JSX) including cement maker PT Semen Gresik, tin miner PT Tambang Timah, state telecommunication firms PT Telkom, PT Indosat and state bank Bank Negara Indonesia (BNI).

Four state companies which have been on the list to float their shares on stock exchanges next year include PT Krakatau Steel, PT Aneka Tambang, state electricity company PT PLN and flag carrier PT Garuda Indonesia.

Hasan Zein Mahmud, a former JSX president, welcomed the new directorate, saying yesterday that it was a breakthrough to facilitate the government's privatization program.

He said the directorate general for state enterprises should have a special hand in supporting the privatization program and that the new directorate would be very helpful.

"The establishment of the new directorate showed the government's seriousness about pursuing the privatization program," Hasan Zein was quoted by Antara as saying.

He said state-owned companies which would go public in the future have to refer all their privatization problems and questions to this new directorate.

The new directorate will be under the directorate general of supervision of state corporations, Haryanto said.

The government also set up two new bureaus at the Capital Market Supervisory Agency (Bapepam) -- the investigation bureau and the accounting standard bureau -- adding the existing four bureaus.

Haryanto said the two new bureaus were in line with Capital Market Law No 8 1995 which empowered Bapepam to investigate any violation in capital market transactions.

The accounting standard bureau was set up to develop accounting systems in the capital market and to supervise accountants working in the capital market. (09)