Govt plans to sell 35 percent stake in PTPN III

Jakarta (ANTARA News) - The government plans to sell 35-40 percent of its stake in state plantation company PT Perkebunan Nusantara (PTPN) III through an initial public offering (IPO) probably in the second half of 2008, a minister said.

"Many predicted the market will be favorable in the second semester. If this is so, we will dispose of the stake in PTPN III," State Enterprises Minister Sofyan Djalil said here on Saturday.

The government had yet to dispose of its stake in the company due to the unfavorable market condition, he said.

PTPN III President Director Amri Siregar expressed hope the company would earn Rp1 trillion from the IPO.

"We need an estimated Rp1 trillion to develop upstream and downstream businesses," he said.

The company was waiting for a green light from the government and the House of Representatives (DPR) as stakeholders, to dispose of the stake in the company, he said.

He said the company was ready to conduct the IPO if the government as a shareholder asked it to do so and the DPR approved a plan for the IPO.

PTPN III currently manages 103,424 hectares of oil palm plantations and 38,116 hectares of rubber plantations in North Sumatra.

Last year, the company posted a net profit of Rp702.749 billion.