GOVT APPROVES GARUDA'S PLAN TO CONDUCT IPO NEXT YEAR

Jakarta, Aug 27 (ANTARA) - The government has given the green light to Garuda Indonesia's plan to conduct an initial public offering (IPO) of its shares next year, a company official said.

"The IPO will be included in the company's 2009 business plan and corporate budget," Garuda Operations Director Ari Sapari said on Wednesday.
Garuda was in the middle of preparations for the IPO, he said following a meeting between State Enterprises Minister Sofyan Djalil and Garuda's boards of directors and commissioners.
"The IPO is part of the company's efforts to get funds to refinance its activities," Ari said.
Earlier, Minister Djalil had said Garuda was one of the state firms the government was planing to privatize next year.
The IPO was part of a program to restructure Garuda, the minister said.
Last year, Garuda posted a net profit of Rp258 billion after suffering losses for three consecutive years.
Garuda suffered a loss of Rp811.3 billion in 2004 but the figure fell to Rp688.4 billion in 2005 and to Rp197 billion in 2006.
The national flag carrier needs at least US$400 million to have a positive financial status. However, the government is reportedly able to inject only US$100 million in funds into the company.
Garuda President Director Emirsyah Satar said recently the number of shares to be offered to the public must not exceed 51 percent of the company's total capital.
Garuda had signed agreements for the lease of 50 Boeing 737-800s to be available in 2009, and 10 Boeing 777-30ERs to be ready for use in 2010.