Bukit Asam would go public if market condition strong: Official

The state-owned coal mining company PT Tambang Batubara Bukit Asam would only go public if the local stock market condition is favorable, according to company president Ismet Harmaini.

Speaking to Petromindo.com on the sidelines of a gathering Wednesday, Ismet said that although the authority over the state-owned enterprises is in the hands of the office of the state minister of state enterprises, he personally believed that any initial public offering (IPO) plan should only be implemented if the Jakarta Stock Exchange composite index soar to around 600, compared to around 300, currently.

The government has slated the South Sumatra-based Bukit Asam for sale in 2002 as part of its overall privatization program in a bid to raise around Rp 6.5 trillion in cash to help finance the state budget deficit.

Bukit Asam has been making serious preparations for the launching of the IPO since last year.

But Ismet said that the company?s top priority this year would be on how to boost annual production level to 11 million tons from the current 9-10 million tons of coal.

He said that one of the problems is the low capacity of train transportation.

He said that a higher coal production capacity would make Bukit Asam more appealing to investors.(Amoros)