Govt to raise 1.1 trln rph from PGN stake

Indonesia expects to raise 1.1 trillion rupiah ($106.3 million) from the sale of a 7.1 percent stake in state-run PT Perusahaan Gas Negara (PGN) this year, State Enterprises Minister Sugiharto said on Monday.

Sugiharto told legislators in a parliamentary hearing the sale would help the government meet its target of raising a total of 13.1 trillion rupiah from state-controlled firms this year.

The funds would be used to help finance the state budget.

"State enterprises are expected to contribute 13.1 trillion rupiah, which comprises 12 trillion worth of dividends and 1.1 trillion from the PGN stake sale," the minister told legislators in a parliamentary hearing.

The government decided to sell only 7.1 percent of the gas firm, against an earlier target of an up to 10 percent, following a share option scheme for PGN's management, Sugiharto said.

He did not elaborate.

According to the company's 2004 annual report, the government controlled around 60 percent of PGN at the end of last year. (*)