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30 state firms on stream to go private, mostly via IPOs
The government plans to sell shares in 30 state owned companies next year, most of them through the initial public offering (IPO) scheme, Deputy State Minister for State Enterprises Muhammad Yasin says
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The government plans to sell shares in 30 state owned companies next year, most of them through the initial public offering (IPO) scheme, Deputy State Minister for State Enterprises Muhammad Yasin says.
"Most of the firms will be privatized via an IPO, except those companies in which the government has only a small proportion of shares," said Yasin.
The privatization program will include several carried-over programs from this year, including IPOs of steelmaker PT Krakatau Steel, flag carrier Garuda Indonesia and Bank Tabungan Negara.
Yasin said the government expected to generate close to Rp 10 trillion (US$906 million) from selling around 30 percent of the shares in each of these companies.
"Before we offer the stake to the market, we will first offer current companies' stakeholders the chance to buy them," he said, adding proceeds from the IPOs would be used to restructure the companies.
Construction firms PT Pembangunan Perumahan and PT Waskita Karya are currently waiting for House of Representatives approval for their IPOs, according to Yasin.
The ministry initially planned to privatize 44 companies next year, but decided to postpone several of them due to the recent stock market collapse as a result of the financial crisis following the Wall Street crash in the United States.
Indonesia has 139 state-owned firms engaged in energy, mining, utilities, telecommunications, banks, services, and commodities. -- JP/(hwa)
