Govt needs only to sell 3% of PGN shares

President Director of the state owned gas distribution company PGN WMP Simandjuntak said the the government will need only to sell three percent of its share ownership in the company to finance the shortage in the 2006 state budget, Kompas reported on Wednesday.

"If the government plans only to raise about Rp 1 trillion from this year's privatization program, it does not need to sell 7.1 percent of its shares in PGN. By selling only 3 % percent of its shares in PGN, the proceeds would be more than enough," he told reporters on Tuesday. "By selling three percent of PGN shares, the government does not even need to sell its shares in other state companies," he said.

State Minister of State Enterprises Sugiharto said that the government expected to raise about Rp 1 trillion from this year's privatization program. But he said that if the government's dividends from state companies are enough to meet the required funds, this year's privatization plan could be cancelled.

In 2005, the government planned to raise Rp 3.5 trillion from privatization in a number of publicly listed companies. But the plan had been cancelled because the dividends from the state funds were more than enough to meet the target. (*)