Govt may stop Antam divestment plan if financial report contain problems

The government may stop the divestment process of its 14 percent stake in state-owned gold and nickel mining company PT Aneka Tambang Tbk (Antam) if the latter’s 2003 financial report contains problems after being audited, Bisnis Indonesia daily reported on Tuesday.

Deputy to State Minister for State Enterprises for Restructuring and Privatization Mahmuddin Yassin said the government will wait for the audited financial report of Antam before taking any decision on the divestment plan.

“First, we must see the financial report. If there is a problem with it, we will stop the divestment,” Mahmuddin said on Monday in Jakarta.

Antam is facing a problem with the payment of medical bills of its pensioners. It has an obligation of Rp300 billion to Rp350 billion. If it pays this amount, the company’s profit will be affected in a big way.

Antam is struggling to find ways to settle the matter before March 31, 2004, the due date for announcement of financial statements of the publicly listed company. (*)