Lawmakers have approved an initial public offering (IPO) for steelmaker PT Kratakau Steel, flag carrier PT Garuda Indonesia and PT Bank Tabungan Negara (BTN) in a privatization drive.
The privatization of the three companies could generate close to Rp 10 trillion (US$1.06 billion) in proceeds.
The sales could take place as early as the end of this year, State Minister for State Enterprises Sofjan Djalil said Thursday after a hearing with the House of Representatives' Commission XI overseeing financial affairs.
"The market conditions should be good (for the IPO) to give an optimum result. We will not just let go (of the shares)," he said after the hearing which was also attended by Finance Minister Sri Mulyani Indrawati.
The hearing authorized the government to let go a 30 percent stake in Krakatau Steel, the country's largest steelmaker, worth Rp 3.22 trillion ($342.55 million), as early as in the fourth quarter of the year.
The money will be used as part of a total of Rp 16.41 trillion earmarked for its business expansion over the next two or three years to boost production capacity.
With the planned IPO and expansion plan, the company is eyeing to increase revenue to Rp 33.6 trillion in 2012 from an estimated Rp 24.6 trillion this year, and a rise in profit to Rp 3.1 trillion from Rp 1.5 trillion.
For BTN, the hearing mandated the sales of a 30 percent stake to the stock market, possibly in early 2009.
Garuda plans sell a 30 percent of its shares worth Rp 4.2 trillion in 2009. Rp 2.5 trillion will be used to pay the company's debts and Rp 1.7 trillion to add the number of planes.
Commission XI said Garuda could issue a maximum 40 percent of shares.
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