Two more state firms to go public

JAKARTA (JP): Minister of Finance Mar'ie Muhammad said yesterday the government was preparing Aneka Tambang and Krakatau Steel, two of Indonesia's major state-owned companies, to go public this year or early next year.

Speaking at a hearing with the House's Budgetary Commission Mar'ie said part of proceeds from the floats would be used to strengthen the companies' capital structures.

He did not elaborate on the two companies' performances.

Mar'ie said the government did not have a target amount it wanted to raise in the float and had not yet decided what percentage of the companies would be sold.

He said PT Bank Negara Indonesia was the only state-owned firm to list on local stock exchanges this fiscal year. All the proceeds were used to strengthen the company's capital structure.

Aneka Tabang president Darmoko Slamet said last week his company failed to realize last year's Rp 380 billion (US$161.7 million) sales target because of lower nickel prices, bad weather and a malfunction at its South Sulawesi plant and loading facility.

He said the target assumed the price of nickel on the world market would average $3.65 a pound but it averaged only $3.40 a pound.

He said his company aimed to extract 2.8 million tons of nickel, 800,000 tons of bauxite, 425,000 tons of iron ore, 15,234 kilograms of silver, 2,000 kilograms of gold and 10,200 tons of ferro nickel.

Krakatau Steel president Soetoro Mangoensoewargo said his company, one of 10 companies under the government's Management Board of Strategic Industries, said his companies net profit dropped 47 percent to Rp 129.9 billion last year.

Production fell slightly 2.2 million tons in 1995 to 2.1 million last year. Sales fell from Rp 2.22 trillion to Rp 2.14 trillion.

Soetoro blamed the drop on overstocked production in China and the dumping of imported items, which affected steel prices. (bnt/rid)