Ten state companies up for sale next year: Minister
The Jakarta Post, Jakarta
The government plans to sell 10 state companies next year on top of three others originally slated for sale this year, with the goal of raising Rp 8 trillion (about US$880 million) to help cover a wider than expected budget deficit since the Oct. 12 Bali bombing.
The expected privatization proceeds of Rp 8 trillion remains unchanged after the government revised its 2003 state budget to account for the economic impact of the Bali bombing.
"In line with the (revenue) target already set out by the House of Representatives' budget committee, we expect to meet that target by selling 10 state companies in 2003," State Minister for State Enterprises Laksamana Sukardi said during a hearing with House Commission IX for financial affairs on Monday.
Proceeds from the privatization program will be used to cover part of the budget deficit, which the government revised upward to Rp 34 trillion from Rp 26 trillion before the Bali attack.
Those companies to be included in next year's privatization program are: Bank Rakyat Indonesia (BRI), construction company PT Adhi Karya, gas distribution company PT Perusahaan Gas Negara (PGN), housing contractor PT Pembangunan Perumahan, airport operator Angkasa Pura II, brokerage firm PT Danareksa Securities, insurance firm Asuransi Kredit Indonesia (Askrindo) and the government-run industrial real estate companies Kawasan Berikat Nusantara, Jakarta Industrial Estate Pulo Gadung and Surabaya Industrial Estate Rungkut.
The government owns a stake of between 45 percent and 100 percent in these companies.
The government also hopes to sell three companies that had their sales delayed in 2002 by various problems.
They are Soekarno-Hatta International Airport operator PT Angkasa Pura I, pharmaceutical firm PT Kimia Farma and Bank Mandiri, the country's largest bank in terms of assets.
For this year, the government is targeting privatization proceeds of Rp 6.5 trillion. Of that amount, Rp 3 trillion has been raised so far, according to Laksamana.
With one and half months remaining in 2002, the government hopes to finalize the sale of property firm Wisma Nusantara, pharmaceutical firm PT Indofarma, international call operator PT Indosat and coal mining firm PT Bukit Asam.
The government is counting on the sale of a 41.95 percent stake in Indosat, worth about Rp 4 trillion, to make up for the revenue shortfall so far experienced by this year's privatization program.
During the hearing on Monday, Laksamana urged the legislators to approve next year's privatization list.
"None of the 10 companies have yet to be approved by the House," Laksamana said, adding that he expected to be given the green light soon.
Securing the House's consent for the sale of state companies is not mandatory, but without such consent the government generally prefers to delay the sales.
Legislators have slowed or blocked the sale of a number of state companies, arguing that foreign investors should not be allowed to gain control of important state assets.