Pelindo privatization into effect next year

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)