American brokerage houses Lehman Brothers and Goldman Sachs have reached an agreement with the new government of Indonesia to assist in the partial privatization of 12 state-controlled companies.
The government intends to privatize three mining companies in order to raise US$2.5 billion and keep its commitments to the International Monetary Fund, according to The Wall Street Journal. The government intends to complete the sales by March of next year.
The mining companies in question include PT Aneka Tambang, PT Tambang Timah and PT Tambang Batubara Bukit Asam.
Aneka Tambang was the subject of a joint-venture proposal with First Dynasty Mines (fdm-t) in early 1996. While the transaction was never consummated, Aneka Tambang did manage to complete an initial public offering, though many of the shares were held by the government. The company controls two nickel mines and a nickel smelter, as well as the Gunung Pongkor gold mine in Java.
Indonesia’s tin company, Tambang Timah, also completed an initial public offering that was largely snapped up by the government. The company is the largest producer of tin in the world.
The third, Tambang Batubara Bukit Asam, is a gold company.
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