SOES SHOULD NO LONGER ACT AS PASIVE PARTNERS: MINISTER
Investors interested in participating in infrastructure projects need no longer worry about having to team up with freeloading state firms now that the government has reformed its policies on state-owned enterprises, says a minister.
Speaking during the second day of the Indonesia Infrastructure Conference and Exhibition 2006 on Thursday, State Minister for State Enterprises Sugiharto said the government had been working hard to shake up the country's SOEs and convert them into professional, commercial entities, and prospective business partners for investors.
Among the SOEs the government is touting as prospective partners for infrastructure projects are turnpike operator PT Jasa Marga, local-government water utilities, seaport operator PT Pelindo, power firm PT PLN, and telecommunications provider PT Telkom.
The government is offering 111 projects worth US$19.1 billion during the infrastructure conference, including 10 model projects worth $4.4 billion in the transportation, power, seaport, water-supply and telecommunications sectors.
In his presentation to investors, Sugiharto outlined three ways by which investors could work together with SOEs in promoting infrastructure projects, one of which was to form a new company to execute the project.
"Such an investment could be based on 85 percent ownership for the private investor and 15 percent for Indonesia, with a time horizon of 15 years," Sugiharto said.
Another way would be for the private investor and SOE to act as equal partners in a project, with the government playing the role of regulator.
Thirdly, the government would consider allowing a private investor to take a direct stake in an SOE undertaking an infrastructure project -- meaning that the government would sell part of its shares in the SOE.
Sugiharto said the government planned to sell stakes in up to 14 SOEs next year, including Jasa Marga and PLN subsidiary Indonesia Power. He also said the government planned to sell more shares in state gas utility PT PGN by the end of the year. -- JP/Urip Hudiono
Speaking during the second day of the Indonesia Infrastructure Conference and Exhibition 2006 on Thursday, State Minister for State Enterprises Sugiharto said the government had been working hard to shake up the country's SOEs and convert them into professional, commercial entities, and prospective business partners for investors.
Among the SOEs the government is touting as prospective partners for infrastructure projects are turnpike operator PT Jasa Marga, local-government water utilities, seaport operator PT Pelindo, power firm PT PLN, and telecommunications provider PT Telkom.
The government is offering 111 projects worth US$19.1 billion during the infrastructure conference, including 10 model projects worth $4.4 billion in the transportation, power, seaport, water-supply and telecommunications sectors.
In his presentation to investors, Sugiharto outlined three ways by which investors could work together with SOEs in promoting infrastructure projects, one of which was to form a new company to execute the project.
"Such an investment could be based on 85 percent ownership for the private investor and 15 percent for Indonesia, with a time horizon of 15 years," Sugiharto said.
Another way would be for the private investor and SOE to act as equal partners in a project, with the government playing the role of regulator.
Thirdly, the government would consider allowing a private investor to take a direct stake in an SOE undertaking an infrastructure project -- meaning that the government would sell part of its shares in the SOE.
Sugiharto said the government planned to sell stakes in up to 14 SOEs next year, including Jasa Marga and PLN subsidiary Indonesia Power. He also said the government planned to sell more shares in state gas utility PT PGN by the end of the year. -- JP/Urip Hudiono
posted by Zumrowi Yunus at
4:40 PM
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