Three state firms prepared to sell shares overseas

JAKARTA (JP): The government is preparing another three state companies to float shares on overseas markets following last month's successful debut of PT Indosat on the New York Stock Exchange (NYSE).

Minister of Finance Mar'ie Muhammad confirmed the initial public offering (IPO) plan yesterday, saying the three companies are PT Telkom, the provider of domestic telecommunication services, PLN, the electricity company, and Jasa Marga, the toll road operator.

The minister told the Budgetary Commission of the House of Representatives the three companies would raise funds to finance their expansion programs.

"These three state firms are the most prepared, to go international," he said about the government's privatization plans.

Cement firms

Speaking during the preliminary deliberation of the 1995-96 budget, the minister said the government would also sell ordinary shares of the country's three state-owned cement producers, East Java-based Semen Gresik, the South Sulawesi-based Semen Tonasa and the West Sumatra-based Semen Padang.

Semen Gresik is the first state company listed on the stock exchange. The other two cement producers planned to enter the local market last year but the plan was suspended due to the unfavorable situation of the market during that time.

Mar'ie said the three cement companies would be consolidated first before making their overseas stock market debut.

The finance minister said the state-owned airline company Garuda Indonesia, which recently announced its plan to follow Indosat's debut, still needs time to prepare "its go- international plan."

Indosat raised at least US$800 million from the sales of its shares on the NYSE and Rp 650 billion ($297 million) on the domestic market.

US$800 million of the IPO proceeds goes into the state coffers to finance national development projects and Rp 650 billion to Indosat for strengthening its telecommunication services.

Indosat sold 25 percent of its total 1.03 billion ordinary shares to overseas investors and another 10 percent to local investors. The company is the first state company listed on the overseas stock market and the second firm on the local exchange after Semen Gresik.

Minister of Tourism, Post and Telecommunications Joop Ave said the 25 percent of the company's shares sold to foreign investors mainly comprised of the government stocks, while the remaining 10 percent were new shares. (hen)