Pembangunan Jaya Ancol to go public this year

JAKARTA (JP): Despite being plagued by scandal, city-owned developer and recreation operator PT Pembangunan Jaya Ancol is expected to go public this year, City Governor Sutiyoso revealed on Thursday.

"I hope before I end my term next year, there is a city-owned company that has gone public. The company (Pembangunan Jaya Ancol) is expected to float its shares this year," said Sutiyoso

He said Pembangunan Jaya Ancol was one of the best performing city administration-owned companies. The governor, however, refused to detail the financial performance of the company in past years.

The company manages the Taman Impian Jaya Ancol (Ancol Dreamland) in North Jakarta and a number of properties in the area. The company is seeking the council's approval for their Marina city project in Ancol.

By selling the company's shares, Sutiyoso hopes that the people could also control the company's management.

"With increased public scrutiny, it would lessen our burden in overseeing the company," the governor said.

The city administration is currently the majority shareholder of PT Pembangunan Jaya Ancol. Property tycoon Ciputra owns the remaining shares.

The company had drawn public criticism following its financing of several city councillors and officials trips to South Africa, Japan and Australia.

Three councillors have reportedly been declared suspects in the scandal after they received a travel allowance of Rp 54 million each, including sponsorship from Pembangunan Jaya Ancol, although they did not join the comparative study trip.

Deputy Governor for Economy and Finance Fauzie Alvi Yasin revealed on Friday that the administration had appointed former president commissioner of Jakarta Stock Exchange Erry Riyana Hardjapamekas as PT Pembangunan Jaya Ancol's commissioner.

Fauzie said Erry had the experience of leading state-owned tin mining company PT Timah to go public when he was the company's president.

"Erry is now preparing the company (Pembangunan Jaya Ancol) to be a publicly listed company," the deputy governor told reporters in a discussion on city-owned firms in Cipayung, West Java.

Sutiyoso revealed on Thursday that the city administration planned to set up five sub-holding companies which would group 29 city-owned companies.

"Companies, which can be improved and which have similar functions will be merged. Other companies (which have been performing poorly) in which there is no hope will be liquidated," Sutiyoso said.

Fauzie earlier said the five sub-holding companies would be under a holding company called Jakarta Incorporated which would be under the city governor's control.

"The sub-holding companies would be handled by professionals," he added.

He said the five sub-holding companies would focus on property, hotel and tourism, trade and distribution, public utilities and finance. (jun)