PT Bukit Asam?s privatization to be completed this year

The planned privatization of the state owned coal producer PT Tambang Batubara Bukit Asam (PT BA) is expected to be completed in November, this year, Neraca daily reported on Tuesday.

The company said in a document delivered during a hearing with the Commission IX of the House of Representatives (DPR) on Monday that the preparation for the privatization, which included the appointment of a financial consultant and the establishment of a subsidiary company, was expected to be completed in August 2001.

PT BA is optimistic that the privatization would attract many investors given the brisk prospect in the future coal demand both in local and overseas markets. The long-term contract recently signed with PT Suralaya power plant significantly improved the company?s value.

The long-term contract would make PT BA more attractive because it would contribute a long-term business certainty to its operation.

The government planned to sell up 49 percent stake in the South Sumatera-based coal producer to help plug the state budget deficit. The divestment will be carried out through an initial public offering or direct placement to strategic investors.(*)