JAKARTA, Sept 19 An Indonesian parliamentary
commission has approved government plans to privatise three
state firms including the country's biggest steel maker via
initial public offerings (IPO), a parliament member said on
The approval means the government can proceed with stake
sales in steelmaker PT Krakatau Steel, home-loan focused PT
Bank Tabungan Negara (BTN) and national airline PT Garuda
"Regarding the timing, it's in the hands of the government,
to ensure maximum results," said Asman Abnur, vice chairman of
the commission which handles finance and banking.
He added maximum stakes sale had been set at 30 percent for
BTN and Krakatau Steel, while Garuda Indonesia had been set at
ArcelorMittal SA (ISPA.AS), the world's largest steelmaker
and BlueScope Steel Ltd (BSL.AX), Australia's largest
steelmaker, have shown an interest in acquiring a stake in
Krakatau Steel aims to raise 3.2 trillion rupiah in the
IPO, according to a document from the firm.
Krakatau Steel's president director, Fazwar Bujang, said in
an interview with Reuters on Sept. 3 that it would use the IPO
proceeds to help finance expansion plans of more than $1.5
billion. The firm aims to double its steel production to 5
million tonnes by the year 2011.
Garuda Indonesia, which together with all 51 Indonesian
airlines has been banned from European Union airspace because
of safety concerns after a series of accidents, has said it
will use the proceeds to pay down some of its debt and invest
in new planes.
The Indonesian government had said proceeds from the stakes
sales in the three firms would be used to allow the firms to
expand and to improve performance.
Previously, the government has used part of the proceeds
from privatisation sales to help fund the country's budget
Other privatisation candidates include plantation firms
Perkebunan Nusantara III, IV and VII.
(Writing by Adreas Ismar; Editing by Ed Davies)