"We plan to propose the IPO of Waskita and Hutama Karya shares be conducted next year," Assistant for Infrastructure and Logistics to State Enterprises Minister Sumaryanto Widayatin said here on Tuesday.
This meant that the privatization of state firms this year would not affect state construction companies, he said.
He said the privatization of state construction companies would be directed toward expanding their businesses.
Hutama Karya and Waskita were supposed to make an IPO of their shares this year.
Hutama Karya has set itself the target of raising Rp1 trillion through the IPO. The company plans to issue a maximum of 40 percent of its enlarged equity capital through the IPO. Meanwhile, Waskita plans to issue a maximum of 35 percent of its enlarged equity capital through the IPO in which it expected to raise Rp600 billion.
Although it had decided to put the planned IPO of Hutama Karya and Waskita shares on hold, the ministry as a proxy of state shareholders would go ahead with the program to restructure five state firms engaged in construction services, he said.
The restructuring program is distinguished into sectoral and corporate restructuring programs. The sectoral restructuring program is directed toward achieving the ideal number of state firms.
To date, there are 14 state firms engaged in construction services, including PT Adhi Karya Tbk, PT Wijaya Karya Tbk, PT Pembangunan Perumahan Tbk, PT Waskita Karya, PT Hutama Karya, PT Nindya Karya, PT Istaka Karya, PT Bina Karya, PT Virama Karya, PT Yodya Karya, PT Indra Karya, and PT Indah Karya.
Meanwhile, the corporate restructuring program is conducted by injecting capital to state firms.(*)