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)