Majority of SOE Privatization by Right Issues
Wednesday, 03 January, 2007 | 14:44 WIB

TEMPO Interactive, Jakarta: The majority of state-owned enterprises (SOEs) privatization this year will be carried out by issuing new shares (right issues).

This means that the funds from privatization will be used for financing the companies' operations and improving their capital adequacy.

Said Sidu, Secretary of the State Minister for State Enterprises, said the target of next year's privatization is around Rp3.3 trillion.

This amount of funds can be met in full from the sale of the state's shares in PT Bank Negara Indonesia Tbk.

Therefore, the proceeds of the privatization of 14 SOEs this year can be used for increasing the companies' performance.

“This is in line with the mandate of State Enterprises Decree,” he said in Jakarta yesterday.

Head of House of Representatives (DPR) Commission for State Enterprises, Didik J. Rachbini, said the funds resulted from SOEs privatization actually should be used for the improvement of the companies' performance, not to cover any budget deficit.

Budiriza