New directorate to spur privatization program

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)