Govt asks Krakatau Steel to speed up IPO

Antara ,  Jakarta   |  Tue, 08/12/2008 7:05 PM  |  Business

The government has asked state-owned steel company PT Krakatau Steel (KS) to speed up its initial public offering (IPO) so as not to lose market momentum, says State Enterprises Minister
Sofjan Djalil.

"I have asked KS to hold the IPO soon before prices of strategic commodities fall, although the steel price is likely to remain good," the minister told the press at a function here on Tuesday.

Sofyan made the statement after the signing of a cooperation agreement between state enterprises and the organizer of a training and education project.

State enterprises, which consist of workers' insurance company PT Jamsostek and port operator PT Pelindo II, will serve as coordinators of the project.

The minister's statement is in connection with the downward trend of strategic commodities' prices in the world market, which affected a number of regional stocks exchanges including those in Indonesia.

"I hope this will be a temporary situation only," the minister said.

But when asked what steps the government would take in light of the situation, the minister did not give details.

"In short, we will make good preparations in light of the current downward trend in all prices of strategic commodities that is disappointing many shareholders," the minister said.(**)

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