Indonesian bourse criticizes lack of state-run enterprises going public

15:16, December 09, 2009      

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The Indonesian bourse, PT Bursa Efek Indonesia (BEI), said that the government is afraid of loosing income from state-run enterprises if its shares diluted after the companies conducting initial public offering (IPO), detikcom online news reported on Wednesday.

"There is a tendency in the government's mind that the country's income would be decreased if its shares diluted," President Director of BEI Ito Warsito said.

He said that the tendency is reflected by only 15 state-run companies doing privatization in the last 18 years.

According to Ito, the government is not fully confident on state-run companies that register their shares in the bourse.

Whereas, he said, being public companies means that their transparency would be clearer.

He took an example of the country's biggest telecommunication company of Telkom whose shares value increases to 90 trillion rupiah (about 9 billion U.S. dollars) currently from 20 trillion rupiah (about 2 billion dollars) before its IPO.

"The government should fix they way it thinks," Ito said.

He hoped that the government let more state-owned companies to register their shares in the bourse.

"Apart of making the bourse more dynamic, the move also helps to grow economy further," said Ito.

Source: Xinhua
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