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)