Pelindo privatization into effect next year

JAKARTA (JP): The government will likely open the tender for the sales of its stake in state sea port operator PT Pelabuhan Indonesia (Pelindo) II to strategic investors early next year, a corporate executive has said.

Company director Harmani said on Thursday that Pelindo II, which manages and operates sea ports in West Java and South Sumatra was working on details of the privatization program.

"We cannot disclose any further details of that yet.. just wait until April," he said in a press briefing.

Harmani said that he hoped the government could determine the volume of the shares which would be sold in the privatization program before the end of March so that the bidding could be opened in the following month.

The government has appointed international investment firm Goldman Sachs Pte as the financial advisor for PT Pelindo II's privatization.

The company, which has total assets of US$1.3 billion as of the end of 1997, is one of 12 state companies that have been included in the government's privatization program for 1998/99 fiscal year, which ends in March. The government expects to raise about $1.5 billion in fresh funds from the partial divestment of the 12 companies.

Mexico's Cemex SA de CV won the open bidding last month to buy a 14 percent stake in the country's largest cement maker PT Semen Gresik.

The Mexican company is being given an option to increase its stake in the firm to 25 percent.

The government is currently holding the tender for the sales of its 14 percent stake in international telecommunication operator PT Indosat.

Another Pelindo II's official who asked for anonymity said that the company had scrapped 13 business projects awarded to companies linked to former president Soeharto's family and cronies including the Humpuss Group, headed by Hutomo 'Tommy' Mandala Putra and giant conglomerate Salim Group. (aly)