Rp 900b expected from Kimia Farma divestment
Rp 900b expected from Kimia Farma divestment
JAKARTA (JP): The government expects to gain Rp 900 billion
(US$101 million) from the divestment of between 10 percent to 35
percent of its stake in pharmaceutical company PT Kimia Farma in
December, the company's president said on Tuesday.
Kimia Farma president Darodjatun said that the plan was stated
in this year's new master plan of state enterprises, recently
launched by the State Ministry of Investment and State
Enterprises Development.
Darodjatun said the company's privatization would either come
through the stock exchange or through direct placement from
investors.
"Under the master plan, we may obtain 35 percent of the
proceeds, with the rest going to the government," he told
reporters on the sidelines of a hearing with House of
Representatives Commission VII, which oversees population and
welfare affairs.
According to the master plan, the government has appointed PT
Danareksa Securities as Kimia Farma's lead underwriter.
Darodjatun said that although the company was slated for
privatization in December, the government was willing to sell its
stakes ahead of the schedule should an earlier opportunity arise.
"It will largely depend on the right timing of the market," he
said in reference to market sentiment.
Darodjatun expressed confidence about prospective investors
for the company, saying that Kimia Farma targeted a profit of Rp
200 billion this year, up from Rp 138 billion last year.
He said that the company estimated another 25 percent growth
in profit to Rp 250 billion in 2001.
Products manufactured by Kimia Farma include products, over-
the-counter goods, generic products, contraceptive preparations
and various drugs.
It also supplies medical and research equipment, including
dental units and surgical equipment for hospitals and
laboratories.
The company has six plants, located in Jakarta; Bandung, West
Java; Semarang, Central Java; Watudakon, East Java; and Tanjung
Morawa, North Sumatra.
Kimia Farma is one of 10 state companies that the government
has included in its privatization program.
Others are general mining company PT Aneka Tambang, airport
operator PT Angkasa Pura II, coal mining company PT Bukit Asam,
plantation firms PT Perkebunan Nusantara III and IV, fertilizer
producer PT Pupuk Kaltim, pharmaceutical company PT Indo Farma,
surveyor firm PT Sucofindo and trading company PT Kerta Niaga.
From the privatization program, the government expects to
raise some Rp 6.5 trillion in proceeds to help finance the
current April to December state budget.(bkm)