Three state plantation firms ready to go public

Three state plantation firms ready to go public

JAKARTA (JP): Minister of Agriculture Sjarifudin Baharsjah
said yesterday that three state plantation firms will soon be
ready to go public.

Sjarifudin announced after installing the new directors of
state plantation firms, known as PTPs, that PTP Nusantara III and
PTP Nusantara IV in North Sumatra, and PTP Nusantara VII in
southern Sumatra are being prepared to go public.

"The listing will not take place this year. We don't want to
rush things," Sjarifudin said.

Before being listed, the firms must be made efficient,
administratively viable and open, he said.

Sjarifudin said there were currently no plans to list on
overseas markets.

Trust

"I believe that it is most important to gain the trust of our
own public first," he said.

PTP Nusantara III, IV and VII have interests in palm oil,
rubber, cocoa, tobacco, sugar and tea.

The government merged 26 PTPs into 14 entities last month in a
bid to boost their efficiency. The 14 plantation firms, renamed
PTP Nusantara I to XIV, were established with paid-up capital of
between Rp 300 billion and Rp 1.7 trillion each.

The restructuring, the government said, was done partly to
facilitate future stock exchange listings.

Fertilizer

Responding to questions about the nationwide shortage of
fertilizer, Sjarifudin insisted the government has acted to solve
the problem.

"Solving the problem is a process of its own... and so far
this has shown a favorable outcome," he said.

The Ministry of Trade and Industry, he said, has stipulated
that state fertilizer manufacturer PT Pusri will directly
distribute fertilizer to farmers.

"The government has also stated that warehouses must have a
month's stock on hand. Previously, the ruling required the
provision of a two-week stock," Sjarifudin said.

He considered this measure "the spirit and goodwill" of the
government in solving the fertilizer shortage.

Sjarifudin admitted the shortage of fertilizer might hinder
the government's rice-production target being reached this year.

"We have these steps which will help to solve the problem. So
even though we must still worry (about achieving the target), I
don't think we have to worry so much," he said.

The country's production of unhusked rice was estimated to
have increased by only 4 percent to about 52 million tons last
year. The target growth was 6 percent.

Rice production is expected to increase by at least 5 percent
this year. (pwn)