State enterprises' privatization plan unaltered: Rozy
State enterprises' privatization plan unaltered: Rozy
JAKARTA (JP): Newly appointed State Minister of Investment and
State Enterprises Development Rozy Munir said on Tuesday his
office's privatization program would go ahead as scheduled.
He said the government's commitment to privatize eight state
companies was unaltered despite the change in his office's
leadership.
Rozy, who was appointed last week to replace Laksamana
Sukardi, said however the government would only sell up to 49
percent of the state companies' total shares. He was formerly
Lakasamana's deputy.
"From each company on the privatization list, we would only
sell up to 49 percent of its total shares, thus the government
would remain the majority shareholder," Rozy said in a media
briefing.
The companies ready for privatization are general mining
company PT Aneka Tambang, airport operator PT Angkasa Pura II,
coal mining company PT Bukit Asam, plantation companies PT
Perkebunan Nusantara III and IV, fertilizer producer PT Pupuk
Kaltim and pharmaceutical manufacturers PT Indo Farma and PT
Kimia Farma.
The government expects to raise about Rp 6.5 trillion to help
fill the gap in the April-December fiscal year state budget.
His deputy I Nyoman Tjager said the eight state companies were
required to submit a comprehensive business analysis to the
office within one month to two months.
"The method of the privatization is subject to the business
analysis of the respective state company," he said.
Nyoman said the privatization program would be carried out
either through an initial public offering (IPO) or a direct
placement to strategic partners.
Nyoman said the eight state companies all booked positive net
income in 1999.
"It's not a huge profit. But when companies manage to book
profit even in times of an economic crisis, we are talking about
a good business prospect ahead," he said.
"The company's assets and business prospects are what we are
trying to sell to investors."
The state companies registered between Rp 100 billion and Rp
420 billion net incomes for 1999, according to their respective
financial statements.
No estimates were available on how much each of the eight
state companies would contribute to the total Rp 6.5 trillion
privatization target, said Nyoman.
"We will determine such details later on. But of course there
is flexibility in the case so that the Rp 6.5 trillion target
could not yet be fully covered by this privatization." He noted
positive market sentiment was necessary for good priced assets.
If there was a difficulty in selling stakes in the eight
companies, the government would restrict the sale of shares to
those firms already listed on stock exchanges, he added.
The listed state companies are PT Indosat, PT Telkom
Indonesia, Bank Negara Indonesia (BNI), PT Timah and PT Aneka
Tambang. (udi)