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)