Public Can Own Mining Stocks
Tuesday, 03 October, 2006 | 16:44 WIB

Tempo Interactive, Jakarta: The government is exploring the plan of selling the shares of Indonesian Resources Company to the public.

Roes Aryawijaya, Deputy State Enterprises Minister, explained the government will combine share ownership (65 percent each) at the state mining company, including PT Tambang Batubara Bukit Asam, PT Timah and PT Aneka Tambang, into the Indonesian Resource Company.

After the merging is complete, the government can sell share ownerships at the new Indonesian Resources Company to the public. “The sale can be by initial public offering (IPO),” he told Tempo yesterday (2/10).

There is a possibility that the shares that will be included in Indonesian Resources Company will grow. Last week the government considered to consolidate 9.36 percent of shares at PT Freeport Indonesia and 41.13 percent at PT Indonesia Asahan Aluminium (Inalum). These measures are based on the idea of Citigroup, a consultant appointed to review the establishment of the Indonesian Resources Company.

The result of Citigroup’s review depicts that the amount of the government shares at Freeport Indonesia reaches millions of US dollars. If the shares are consolidated in the Indonesian Resources Company, it will benefit the new resources company. Freeport shares transfer, said a Tempo source at the State Enterprises Ministry, will also attract public investors to the plan of selling shares of the Resources Company.

Adrian Rusmana, Kresna Sekuritas’ Head of Research, said the shares of the Resources Company will later be able to be sold to domestic and foreign public investors. “They can be listed at stock exchanges abroad, such as London or Luxemburg,” he said. Both holding companies and subsidiaries can l be listed as public companies.

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