Three state firms prepared to sell shares overseas
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)