ID :
20109
Thu, 09/18/2008 - 23:09
Auther :
Shortlink :
https://www.oananews.org//node/20109
The shortlink copeid
HOUSE APPROVES IPO OF THREE STATE FIRMS' SHARES
Jakarta, Sept 18 (ANTARA) - The House of Representatives (DPR) Thursday approved the government's proposal to privatize three state firms through an initial public offering (IPO).
The three are steel maker PT Krakatau Steel, Bank Tabungan Negara (BTN) and Garuda Indonesia.
In the working meeting with the Office of State Enterprises Minister and the Finance Minister at the parliamentary building on Thursday, the House Commission XI said it fully left the IPO of the three state firms' shares to the government.
The House Commission which deals with finance, national development planning, banking and non-bank financial institutions said the IPO should consider the proper time so that it would yield an optimum result both for the government and the state firms themselves.
The House was still undecided about the government's proposal to privatize PT Yodya Karya and three state plantation companies, namely PTPN III, IV and VII through an IPO.
However, the House and the government agreed to further discuss the proposal either at a plenary session or a meeting of the working committee on the privatization of state firms.
Krakatau Steel which is 100 percent owned by the government is allowed to sell a maximum of 30 percent of its shares with proceeds from the IPO estimated at Rp3 trillion to Rp4 trillion.
The steel maker is expected to use the funds to finance its business expansion plan which will cost Rp16.4 trillion in the next three years.
Both the House and the government also agreed to allow BTN which is also 100 percent owned by the government to sell 30 percent of its shares at the most to the public.
The bank has set itself a target of raising income to Rp36.12 trillion in 2010 from the projected Rp22.9 trillion this year on the assumption that it could conduct the IPO in the fourth quarter of 2008.
The bank expects its net profit to surge to Rp1.39 trillion in 2010 from the projected Rp472 billion this year.
Meanwhile, its loan to deposit ratio (LDR) is projected to increase to 144.93 percent in 2012 from 105.05 percent in 2008.
Garuda Indonesia which is 95.44 percent owned by the government is allowed to float a maximum of 40 percent of its shares to the public.
The national flag carrier has expected to raise Rp4.2 trillion in funds from the IPO and planned to use Rp2.5 trillion of the funds to repay its debts and Rp1.7 trillion to strengthen its fleet.
The three are steel maker PT Krakatau Steel, Bank Tabungan Negara (BTN) and Garuda Indonesia.
In the working meeting with the Office of State Enterprises Minister and the Finance Minister at the parliamentary building on Thursday, the House Commission XI said it fully left the IPO of the three state firms' shares to the government.
The House Commission which deals with finance, national development planning, banking and non-bank financial institutions said the IPO should consider the proper time so that it would yield an optimum result both for the government and the state firms themselves.
The House was still undecided about the government's proposal to privatize PT Yodya Karya and three state plantation companies, namely PTPN III, IV and VII through an IPO.
However, the House and the government agreed to further discuss the proposal either at a plenary session or a meeting of the working committee on the privatization of state firms.
Krakatau Steel which is 100 percent owned by the government is allowed to sell a maximum of 30 percent of its shares with proceeds from the IPO estimated at Rp3 trillion to Rp4 trillion.
The steel maker is expected to use the funds to finance its business expansion plan which will cost Rp16.4 trillion in the next three years.
Both the House and the government also agreed to allow BTN which is also 100 percent owned by the government to sell 30 percent of its shares at the most to the public.
The bank has set itself a target of raising income to Rp36.12 trillion in 2010 from the projected Rp22.9 trillion this year on the assumption that it could conduct the IPO in the fourth quarter of 2008.
The bank expects its net profit to surge to Rp1.39 trillion in 2010 from the projected Rp472 billion this year.
Meanwhile, its loan to deposit ratio (LDR) is projected to increase to 144.93 percent in 2012 from 105.05 percent in 2008.
Garuda Indonesia which is 95.44 percent owned by the government is allowed to float a maximum of 40 percent of its shares to the public.
The national flag carrier has expected to raise Rp4.2 trillion in funds from the IPO and planned to use Rp2.5 trillion of the funds to repay its debts and Rp1.7 trillion to strengthen its fleet.
