State firms to be privatized

JAKARTA (JP): The Ministry of Industry and Trade plans to privatize five of its eight commercial companies, a senior official said.

Ministry secretary general Aidil Juzar said Wednesday the privatization program would be done through direct share placement, joint operation or selling shares to private firms.

He said his office was still negotiating with private investors. He did not say which companies would be privatized.

The companies, formerly overseen by the defunct Ministry of Trade, received special facilities from the government for the distribution, export and import of certain commodities.

He said the government expected to receive Rp 234.4 billion in income tax and about Rp 99.4 billion in dividends from the 32 trade and industrial companies overseen by the ministry.

In 1996, the companies paid about Rp 291.59 billion in income tax and about Rp 127.21 billion in dividends.

Total assets were estimated to rise from Rp 13.32 trillion in 1996 to Rp 14.19 trillion in 1997, while revenue is expected to rise from Rp 8.78 trillion to Rp 9.63 trillion. (10)