GOVT TO PRIVATIZE SEVEN STATE ENTERPRISES THIS YEAR

Jakarta, Sept 6 (ANTARA) - The government plans to privatize seven of its state-owned companies this year.

Three of the companies are spinning company PT Cambrics Primissima, paper producer PT Kertas Padalarang and asphalt producer PT Sarana Karya, which are expected to collect Rp340 billion from the privatization, the secretary of the state enterprises ministry, Said Didu, said here on Monday after accompanying the minister in a hearing with House Commission VI dealing with among others state-owned company affairs.

The shares of the company would be sold through strategic sales, he said.

He said the government had decided to privatize the companies because the value of their equity continued to drop while their operations had been hindered so that it was difficult for them to maintain operations and also because of limited access to funding.

He said all the proceeds from the privatization would go to the state coffers.

The government holds 52.7 percent of shares in Cambrics, 48.54 percent in Kertas Padalarang, and 100 percent in Sarana Karya.

He said the Privatization Committee had given its directives with regard to their privatization while recommendations had also been received from the finance ministry and the plan had also been discussed with the parliament.

So far the Association of Indonesian Batik Cooperatives (GKBI which is also an existing shareholder has expressed its interest in buying Cambrics shares.

PT Perum Peruri meanwhile is interested to buy Kerta Padalarang shares while Sarana Karya is currently conducting an operational cooperation with PT Timah.

"So it is just waiting for a parliament approval, the issuance of a government regulation and the establishment of a team that will be followed by selection of and determining supporting agencies," he said.

According to records the government also plans to sell 30 percent of its shares at state-owned plantation companies PTPN III, IV and VII.

Their privatization however will only be carried out after restructuring is done through the establishment of a plantation holding company.