Tanri hits the road to sell state firms

JAKARTA (JP): State Minister of the Empowerment of State Enterprises Tanri Abeng said on Friday he would hold a 10-day international road show to promote the country's state companies to prospective investors.

He said the road show would cover 10 major international cities: London, Amsterdam, Bremen, Frankfurt, Paris, New York, Connecticut, New York, Washington D.C., Chicago and Los Angeles.

"We'll leave this evening (Friday) to start work on Saturday," he said after meeting with President B.J. Habibie.

Tanri said he planned to meet financier George Soros and management guru Peter Drucker, whom he studied under in the U.S..

Tanri said the purpose of the presentation was not to clinch any transaction, but to increase the awareness and the interest of foreign fund managers, securities firms and strategic investors to invest in state-owned companies.

The government is targeting US$1.5 billion in privatization proceeds in the current 1999/2000 fiscal year.

It has so far raised nearly $800 million from the privatization program.

Tanri said he planned to sell part of the government's stake in Jakarta international airport operator PT Angkasa Pura II, plantation firm PTP IV, fertilizermaker PT Pupuk Kaltim, publicly listed international telecommunications firm PT Indosat and mining firm PT Aneka Tambang.

"We have to work fast," Tanri said, adding that he was optimistic about privatization prospects due to improving economic and political conditions.

The World Bank urged the country this week to seek more domestic financing resources, including privatization measures, to finance the state budget, rather than expecting more loans from the bank.

Visiting World Bank managing director Sven Sandstrom said the Bank would assist the government with its privatization program.

Sandstrom's comment was made ahead of the country's major donors meeting (the Consultative Group on Indonesia -- CGI) on July 27 and July 28 in Paris, which will decide on a new loan commitment for the country.

Last year, Indonesia received $7.9 billion, but the country may only receive some $4.7 billion this year.(prb/rei)