Two more state firms to go public

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)