MINISTER OPTIMISTIC GARUDA`S IPO FEASIBLE IN 2009

Jakarta, Sept 19 (ANTARA) - State Enterprises Minister Sofyan Djalil said he was optimistic the privatization of 40 percent of national flag carrier PT Garuda Indonesia shares through an initial public offering (IPO) can be realized in 2009.
"It is not possible to do it this year but I am optimistic we can do it in 2009," the minister said here Friday.
Comission XI of the House of Representatives (DPR) on Thursday approved the government's proposal to privatize three state-owned companies -- Krakatau Steel, Bank Tabungan Negara and Garuda Indonesia -- through IPOs.
According to Djalil, privatization of Krakatau Steel and Bank Tabungan Negara this year was a real possibility because the two companies were already prepared for it.
Meanwhile, State Enterprises Ministry data show the government now owns 95.44 percent of Garuda Indonesia shares.
The company is expected to raise Rp4.2 trillion by the planned IPO. Of the amount Rp2.5 trillion would be used to pay debts and Rp1.7 trillion to expand its aircraft fleet.
Through the IPO, Garuda's income in 2008 was expected to reach Rp59.43 trillion or well above the Rp18.92 trillion projected earlier.
Djalil said Indonesia's aviation industry would not be affected by the current global financial crisis.
"The aviation industry is more flexible although its development also tends to be influenced by the financial sector," he said.
The minister said the House's approval was the most important thing and now it would need a study on IPOs implementation related to Garuda's financial condition.
"The IPO is needed to strengthen Garuda's capital, support the company's growth and gain access to long-term financial resources," he said.***2***