ASEAN KEY DESTINATIONS
Indonesia: Krakatau Steel privatisation set for November
President Director of Indonesia’s PT Krakatau Steel Fazwar Bujang has confirmed the privatisation of the company in late November 2008 through an Initial Public Offering (IPO), reported national news agency Antara.
"It`s confirmed, it will be end of November," Bujang said at the state enterprises ministry here on Friday.
This year the state enterprises ministry has proposed privatisation of 11 companies through IPO, but only five are ready to go public, namely PT Krakatau Steel, PT Nusantara Plantation Company (PTPN) III, PTPN IV, and PTPN VII.
State Enterprise Minister Sofyan Djalil also confirmed the planned privatisation of state steel plant PT Krakatau Steel.
"Hopefully, it will be on schedule (November), but it depends on the House of Representatives (DPR) which has the authority to allow the privatisation," Sofyan Djalil.
The Krakatau Steel management is currently preparing the IPO plan seriously and the stock exchange condition is favorable as the steel industry sector is improving.
"The matter is up to DPR, which is currently on a recess. When the legislators are back, we will request a schedule for the first IPO," the minister said.
The minister, however, could not say exactly how many shares of Krakatau Steel will be offered to the public. The steel company is likely to offer 40 percent of its shares.
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