Govt to privatize Bukit Asam in H1 of 2002

The government plans to privatize the state-owned coal mining giant PT Tambang Batubara Bukit Asam in the first half of this year, according to State Minister of State Enterprises Laksamana Sukardi.

He said that the sale of government shares in the company was part of the government 2002 privatization program currently being finalized at his office. He said that around 23 state-owned enterprises had been included in the privatization program aimed at raising around Rp 6.5 trillion (US$1=Rp 10,300) in proceeds to help finance the 2002 state budget deficit.

The overall privatization program would be debated by a team of senior economic ministers next week, Laksamana said.

Bukit Asam, based in South Sumatra, has annual coal output of between 9-10 million tons per year.

The government initially planned to privatize Bukit Asam in 2001, but failed partly due to unfavorable market condition.(Amoros)