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Tata Steel eyes power plant project in Indonesia

One of the world's top steel Industry players, Tata Steel, is considering investing in electricity generation in Indonesia, says an official.

Speaking to reporters after a meeting with Vice President Jusuf Kalla in Jakarta on Thursday, Tata Steel director for Southeast Asia Oo Soon Hee said the company would carry out a feasibility study for investing in power plant projects here as suggested by the vice president.

The plan, he said, was part of Tata's goal to invest in many sectors in Indonesia. The company, he said, had other expertise besides steel production such as chemical engineering and power
generation.

So far, Tata has invested in Indonesia's coal industry and is also keen on investing in the country's largest steel manufacturing company, PT Krakatau Steel, which is owned by the state.

Many global steel companies have stated their interest in acquiring shares in Krakatau to the government. However, the government decided to privatize the steel company through launching an initial public offering in November. (and)

Krakatau Steel to go private in November

President Director of Pt Krakatau Steel Fazwar Bujang has confirmed the privatization of the company in late November 2008 through an Initial Public Offering (IPO).

"It's confirmed, it will be end of November," Bujang said at the state enterprises ministry here on Friday. This year the state enterprises ministry has proposed privatization of 11 companies through IPO, but only five are ready to go public, namely PT Krakatau Steel, PT Nusantara Plantation Company (PTPN) III, PTPN IV, and PTPN VII.

State Enterprise Minister Sofyan Djalil also confirmed the planned privatization of state steel plant PT Krakatau Steel. "Hopefully, it will be on schedule (November), but it depends on the House of Representatives which has the authority to allow the privatization," Sofyan Djalil. The Krakatau Steel management is currently preparing the IPO plan seriously and the stock exchange condition is favorable as the steel industry sector is improving.

"The matter is up to DPR, which is currently on a recess. When the legislators are back, we will request a schedule for the first IPO," the minister said. The minister, however, could not say exactly how many shares of Krakatau Steel will be offered to the public. The steel company is slated to offer no more than 40 percent of its shares.

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