Ten state companies up for sale next year: Minister
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.