South Sumatra legislators question PT BA privatization plan

Members of the South Sumatra legislative council have questioned the privatization plan of coal mine operator PT Batubara Bukit Asam (PT BA), which according to them, is too valuable to be sold to investors, Neraca daily reported on Tuesday.

Iskandar Syamwel, a member of the council?s Commission B, said the government?s plan to sell part of the company?s shares to local and foreign investors did not make sense because the profitable company such as PT BA should instead be kept as important sources of income of both local and central governments.

PT BA is one of companies which have been included in the privatization list. The government plans to use privatization proceeds to finance the budget deficit and pay foreign loans.

Iskandar said that the council would soon summit the management of the coal mining company to explain the privatization plan. "We have to know the true reasons behind the privatization plan," he said.

PT BA is one of the most profitable state-owned companies in the country. Last year, PT BA produced 10.2 million tons of high quality coal. (*)