Indonesia delays Aneka Tambang, Timah privatisation indefinitely

The Indonesian government has decided to delay the privatisation of mining concerns PT Tambang Timah and PT Aneka Tambang due to weak commodity prices, State Enterprises Minister Laksamana Sukardi said Tuesday.

"Clearly, it cannot be carried out this year," the AFP quoted Sukardi as saying at parliament.

He said the government was concerned that weak commodity prices would push down the valuation of the companies.

The cash-strapped government is embarking on privatisation as part of economic reforms pledged in return for five billion dollars in aid from the International Monetary Fund and to help reduce a ballooning budget deficit.

PT Aneka Tambang derives its main income from nickel but it also mines gold, silver and other various precious metal.

Tambang Timah saw its profits plunge 92 percent to 2.5 million dollars in the first nine months of 2001 amid plunging world prices for tin, high operating costs and competition from illegal miners.

Both companies had been scheduled for privatisation some time this year. (*)