Only three state firms to go public in 2010

Nani Afrida, The Jakarta Post, Jakarta | Tue, 12/15/2009 8:10 PM

State Enterprises Minister Mustafa Abubakar confirmed Tueday that only three state companies — construction company PT Pembangunan Perumahan, flag carrier PT Garuda Indonesia and steel maker PT Krakatau Steel — qualified for privatization through an initial public offering (IPO) in 2010.

PT Pembangunan Indonesia would be privatized in the first semester of 2010, while Garuda Indonesia and Krakarau Steel in the second semester, Mustafa said.

“Garuda will go public in the middle of 2010, probably in June, while Krakatau Steel will follow in the second semester,” he said.

He said the government would also watch the condition of the steel market, particularly after the ASEAN-China Free Trade Agreement (FTA) takes effect on Jan. 1, 2010, before deciding on when Krakatau Steel could go public.

Mustafa acknowledged that the FTA would influence domestic steel prices, as steel imported from China would be cheaper than Krakatau's.

“We have to see how the FTA progresses, and then we can talk about the Krakatau IPO,” he said.

Mustafa also confirmed that the government would delay the privatization of state plantation firms PT Perkebunan Nusantara (PTPN) III, PTPN IV and PTPN VII. The privatization of these companies through IPOs was previously slated for next year.

“These companies still need support from the government,” he said.

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