APSN Banner

Indonesia unveils privatization blueprint

Source
Agence France Presse - June 29, 2000

Jakarta – The Indonesian government Thursday unveiled a blueprint and timetable for a sell-off of state assets this year, including the communication giants, Telkom and Indosat.

The State Enterprise and Investment Ministry said the plan, Reform of State Enterprises 2000, was designed to generate 6.5 trillion rupiah (748 million dollars) as targetted in the April-December budget. Analysts said it was the first time the ministry had given specific percentages and deadlines for the government's privatisation process.

They said the plan was also seen as an effort to satisfy the International Monetary Fund (IMF) which is in charge of a 46 billion dollar bailout program for Indonesia. The IMF has included privatization of 150 state enterprises, staggered over 10 years, in its list of reforms. Jakarta has been accused of foot-dragging on reform and this has resulted in a two-month suspension of a 372 million dollar IMF funding tranche in April.

In a statement, the ministry said the government planned to divest a further 14 percent stake in diversified miner PT Aneka Tambang in October, and 10-35 percent of the coal firm Tambang Batu Bara Bukit Asam by at least November.

The ministry also said it was planning to divest an additional 14 percent of its stakes in Telkom and satellite operator Indosat and its entire 65 percent holding in tin miner Tambang Timah in December.

Among the other stakes to be put on the block was a 10-35 percent holding in plantation company PT Perkebunan Nusantara IV, to be sold by July.

The sale of 10-49 percent stake in pharmaceuticals firm Indofarma was planned for August, 10-49 percent of fertilizer producer Pupuk Kaltim by September, and a 10-35 percent stake in plantation firm PT Perkebunan Nusantara III by October.

The statement also said the government would divest up to 49 percent of airport manager Angkasa Pura II in July or August, 10-35 percent of pharmeceuticals firm Kimia Farma in December, and a 15-20 percent of surveyor Sucofindo in September.

"With the exception of [trading firm] Kerta Niaga, in general the privatisation will be done through IPOs or strategic sales," it said. It added the government planned to sell 100 percent of PT Kerta Niaga, but gave no further details of the company's divestment.

The ministry also said the government was prepared to divest its stakes in a number of other companies by the end of this year. This included up to 75 percent of department store Sarinah, up to 42 percent of office building Wisma Nusantara, 100 percent of PT Perhotelan Indonesia, 100 percent of fertiliser firm Pupuk Sriwijaya and 3.3 percent of Jakarta International Hotel Development.

Country