Govt to sell 49 percent stake at Bukit Asam
Friday, May 25 2001 - 06:30 AM WIB
The government will sell 49 percent of stake at state coal mining company PT Bukit Asam (PT BA), as part of its privatization program for the coal mining company expected to be completed in September, according to an official at the Ministry of Finance.
The director general of state enterprises development, I Nyoman Tjager, told a hearing with the House of Representatives' Commission VIII on mining and energy that the government would pursue the privatization of PTBA through private placement by inviting strategic investors.
He added that if the economy improves, the government would pursue the privatization of PTBA through initial public offering (IPO) of shares on stock exchanges.
"It would need one to two years time to achieve that (IPO) target," he said.
He noted that the government targeted to sell 49 percent of stake at PTBA at the maximum as the government wanted to retain its majority control in the company.
PTBA president RA Sunardi, who was also present at the hearing, said that according to a report from the International Mining Consultant (IMC) in March 2001, PTBA has total coal reserves of 367.65 million tons.
The company has coal probable reserves of 6.7 billion tons, most of them are is located in Tanjung Enim with total reserves of 5.6 billion tons (84 percent), then in Ombilin-Sawahlunto, West Sumatra, with 100 million tons (1 percent), and Cerenti, Riau, with 160 million tons (2 percent).
Members of Commission VIII mostly supported the government's plan to privatize PTBA, which had been delayed several times since its initial schedule of 1996. (*)