Pupuk Kaltim plans to sell 49% stake via IPO
Pupuk Kaltim plans to sell 49% stake via IPO
JAKARTA (JP): State-owned fertilizer firm PT Pupuk Kaltim
plans to sell a 49 percent stake this year as part of the
government's privatization program, according to company
president Syaiful Amir.
Syaiful said on Thursday that the privatization program would
be conducted through an initial public offering (IPO).
"We have completed our preparation (for the IPO)," he told
reporters on the sidelines of a meeting with government
officials.
But Syaiful said that the size of the IPO had yet to be
approved by the government.
He also said that the company was still negotiating with the
government over certain issues including obtaining a long-term
natural gas purchase contract from the government or state-owned
oil and gas company Pertamina.
Syaiful said that the company currently only has a three-year
gas purchase contract with the government, while investors want
the company to have a 10-year contract.
He did not provide further details about the gas purchase
contract, but according to a November 1997 document of Pertamina,
Pupuk Kaltim paid US$1 per MMBTU (Million British Thermal Unit)
for the gas, which was much lowered compared to the purchasing
price of other companies.
"But the IPO plan would also depend on the market condition,"
Syaiful said.
The government has named Pupuk Kaltim as one of eight state-
owned enterprises to be privatized this year in a bid to raise
about Rp 6.5 trillion in proceeds to help finance the 2001 state
budget deficit.
Director general of state-owned enterprises I Nyoman Tjager
said earlier this month that the government would first sell
state-owned pharmaceutical company PT Indofarma through an IPO,
which is expected to be completed in the first quarter of this
year.
Other state companies to be privatized this year include
pharmaceutical company PT Kimia Farma, publicly-listed general
mining firm PT Aneka Tambang, non-listed coal mining company PT
Bukit Asam, chemical firm PT Petrokimia, airport operator PT
Angkasa Pura II, and plantation firms PTPN III or IV.
The government failed to launch its privatization program last
year amid domestic political and security unrest.
Elsewhere, Syaiful said that the company would start operating
a new plant in Bontang, East Kalimantan province, some time in
May next year, which would boost production to three million
metric tons.
Pupuk Kaltim's production level in 2000 was 2.5 million
tons.(rei)