PTBA asks government to divest its ownership this year

JSX-listed state coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA)?s management has said it would be better if the government divest its 19 percent stake this year, Koran Tempo newspaper reported in its Friday edition.

PTBA?s president director Ismet Harmaini said the government can still divest its stake in his company. Because, House of Representatives gave permission in 2002 to the government to divest its stake in PT BA up to 35 percent (maximum). But the government was able to sell just 16.4 percent shares through initial public offering (IPO).

?Still, government can divest around 19 percent (shares of PTBA),? Ismet said during a public expose in Jakarta on Thursday.

Ismet also said PTBA?s management has advised the government to privatize the company this year because, the coal price has been increasing this year. And the local stock market is also on the rise.

?Under these circumstances, there is chance for the government to sell shares at a higher price,? Ismet said.

PTBA?s shares were sold in 2002 during the IPO at the rate of Rp 575 each. On Thursday, the share price of PT BA was closed at Rp875. Currently, the government has 87.3 percent ownership in PTBA.

In fact recently, the government has indicated that it wants to divest PT BA ownership this year. But it didn?t mention the exact time of the divestment. (*)