Antam asks govt to delay privatization plan until 2005

State-owned gold and nickel producer PT Aneka Tambang Tbk (Antam) has asked the government to postpone the privatization program to next year, Koran Tempo newspaper reported in its Monday edition.

The request was made by Antam during a meeting with a government team which deals with the privatization of state owned companies, an officer at the office of the state minister for state enterprises told the paper in Jakarta last weekend.

The reason mentioned by Antam for the delay was it is in the process of completing a ferronickel project, which needs lot of money and attention, the official who did not want to reveal his identity said.

But, no decision regarding the delay was made during the meeting.

Meanwhile, when asked for confirmation, Antam?s company secretary Dohar Siregar neither confirmed nor denied the above information. However, Dohar confirmed that Antam had submitted several proposals to the government including one for the construction of a third ferronickel plant in Pomaala, Southeast Sulawesi with a total investment of Rp 2.7 trillion (US$320 million).

If the above project is completed in 2006, Dohar said publicly-listed Antam?s asset value would be increased much higher from the present one. And the nickel production would reach 26,000 tons from the present 11,000 tons.

Separately, Antam?s president director D. Aditya Sumanagara admitted that the government has a plan to divest its 14 percent stake in Antam. But Antam is still waiting for the evaluation report of the plan.

Currently government has 65 percent ownership in Antam and the rest 35 percent is owned by public. (*)