Jakarta – Indonesian's privatisation of state firms in the year to March 31 is likely to raise less that half the targetted one billion dollars, reports said here Friday.

The privatisation scheme is expected to raise just 380 million dollars, the Jakarta Post daily quoted an unnamed official as saying.

But a letter of intent sent to the International Monetary Fundearlier this week said the government had only been able to raise "close to 200 million dollars" through two transactions in the current financial year.

The letter identified government stakes in food-processing company PT Indofood Sukses Makmur and cement maker PT Semen Gresik.

State Enterprises Minister Tanri Abeng had planned to raise 1.5 billion dollars from the privatisation of 12 state-owned firms, but the figure was later slashed to one billion dollars due to weak market sentiment.

The official said that, so far, Abeng had only succeeded in privatising two state companies, raising 200 million dollars. The official only named one of the companies – PT Pelindo II. Officials have said the Pelindo II tender would be finalized next week.

The unnamed official said that Jakarta also obtained 59 million dollars from divestment of government shares totalling 10.18 percent in publicly listed Indofood Sukses Makmur and 121 million dollars from the sales of its 14 percent stake in publicly listed Semen Gresik.

The letter of intent, sent as part of requirements to get the disbursement of IMF aid, said the privatisation program had fallen behind schedule, blaming unfavorable market conditions.