Privatization of three SOEs
Market has been skeptical when it comes to privatization in the last few years. The only significant 'privatization' was the placement of 5% shares of PT Perusahaan Gas Negara (PGN) Tbk late last year after years of discourse. So, when MSOE Sugiharto claimed that three SOEs (Jasa Marga, BNI, and Wijaya Karya) will be privatized this first half, just reserve that for...
"OK, but we have four months left, pretty much time," said one of Sugiharto's staff at MSOE.
"How long will the approval process, especially to get the clearance from Privatization Committee and then the House of Representative?"
"Depends on how convincing is the government. But it could be weeks or months," he said.
"Given the fast-track approval, is it possible to privatize three SOEs in three months?"
"Why not? The market is there to absorb. Why are you so skeptical on privatization?"
"Because last week, among others, your ministry announced to postpone the privatization of nine companies scheduled this year. I understand you have 13 SOEs remain in the list of privatization this year. But with what's going on out there, I'm skeptical still."
"For the three SOEs mentioned, we're quite optimistic."
Well, let's see whether this time government could deliver.
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"OK, but we have four months left, pretty much time," said one of Sugiharto's staff at MSOE.
"How long will the approval process, especially to get the clearance from Privatization Committee and then the House of Representative?"
"Depends on how convincing is the government. But it could be weeks or months," he said.
"Given the fast-track approval, is it possible to privatize three SOEs in three months?"
"Why not? The market is there to absorb. Why are you so skeptical on privatization?"
"Because last week, among others, your ministry announced to postpone the privatization of nine companies scheduled this year. I understand you have 13 SOEs remain in the list of privatization this year. But with what's going on out there, I'm skeptical still."
"For the three SOEs mentioned, we're quite optimistic."
Well, let's see whether this time government could deliver.
Labels: Jasa Marga, Privatization
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posted by yosef at 3:42 AM
1 Comments:
These are not privatizations but merely the sale of shares in state owned comapnies. There have been NO privatisations to date despite the pretty weak performance of these companies. Indonesia is unusual in having a large number of virtually moribund SOEs but little debate as to why these are state owned. It seems to be a hangover from the Sokarno socialist led philosophy. However, private sector owners with state regulation may be a better way to go. Does Indonesia really need state owned construction companies or plantaiton companies?
As to the three targets, I can imagine there will be demand for Jasa Marga and Wijaya Karya, but BNI may be a tough sell, unless it is sold very cheap.
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