Govt set to divest more PGN shares

The government has indicated that it will divest more shares in gas distribution company PT Perusahaan Gas Negara (PGN) from next year onwards, Bisnis Indonesia reported Wednesday.

Recently, the government successfully sold its 5.31 percent stake in PGN to the public, reducing its stake to 54.06 percent from the original 59.37 percent.

State Minister for State Enterprises Sugiharto said the government will sell its stake in PGN after the company succeeded in converting assets and projects into capital.

?We have a chance to sell it (PGN shares) but it must get approval from the privatization committee. We have to consult the House of Representatives and there should be a government's basic regulation for it,? Sugiharto said on Tuesday in Jakarta.

Sugiharto said the government will retain its majority stake in the state enterprise PGN.

?In principle, we will retain the control of the company by holding minimum at least 51 percent stake,? he said. (*)