Privatization of 3 state firms delayed, restructuring of 21 large debtors off target

The government is surely to miss its target to complete the privatization of three state firms - pharmaceutical firm PT Indofarma, coal miner PT Tambang Batubara Bukit Asam, and fertilizer firm PT Pupuk Kaltim -- by the end of this month.

The deputy for privatization to the state minister of investment and state enterprises development, Nyoman Tjager, said, out of the three, only Pupuk Kaltim was ready to be privatized this month - far behind the government's target stipulated in its letter of intent to the International Monetary Fund.

However, a source told Media that even Pupuk Kaltim was not ready to be privatized this month. "Even if possible, the process will only start at the end of this month." He added that the full process of the privatization for Pupuk Kaltim, through initial public offering of shares, would start in August at the earliest.

Meanwhile, Bukit Asam said in a statement that it was ready to offer shares through the stock market this year.

According to the government's initial plan, Bukit Asam will offer its stocks this month on the London and Jakarta stock exchanges.

Meanwhile, the Indonesian Bank Restructuring Agency (IBRA) said that Bank Danamon, assigned by the agency to restructure debts of 21 large debtors, will be able to restructure about 30 percent of the 21 debtors' debts by the end of this month - again short of the 35 percent put in the letter of intent.

IBRA deputy chairman Arwin Rasyid said that the agency had reached most of the 12 targets set in the letter of intent for the agency. They include the divestment of the government's stake at Bank Central Asia, recapitalization of Bank Niaga, the publication of the new government's guarantee scheme, outsourcing of credits to Danamon and Bank Negara Indonesia.

However, the Agency could not meet the target of merging Bank Danamon and eight other banks by the end of May. (*)