Posted on 22 Sep 2008
Minister of State Enterprises (BUMN) Sofyan Djalil predicted here Sunday that Krakatau Steel`s Initial Public Offering (IPO) would be possible by the end of 2008 if the stock market in Indonesia rebounds.
"If the stock market rebounds just like last week and may continue until the end of the year, it is not impossible that Krakatau Steel`s IPO will be realized," Djalil said after inspecting the preparations of PT Indonesia Ferry to anticipate the annual exodus of people for the Idul Fitri holidays.
According to Djalil, KS`s IPO has in principle been allowed by the House. Its implementation depends on the stock market condition.
"It all depends on the market situation. If it continues to rebound until the end of the year, we can launch an IPO. But if it keeps going down, we`ll have to wait," he explained, adding that the IPO plan is also disrupted by the steel market price.
On September 18, legislators approved the IPOs of steelmaker PT Kratakau Steel, national flag carrier PT Garuda
The House`s Commission XI authorized the government to sell a 30 percent stake in Krakatau Steel with a projected income of Rp3 trillion to Rp4 trillion.
The proceeds of the state company will be used as part of Rp 16.41 trillion earmarked for the company`s expansion plan to boost production capacity, to be implemented over the next two to three years up to 2010.
"Our principle is `wait and see`, because all the preparations have been made," he said.
