The size of Indonesia's privatisation programme has delayed plans for public offerings at both Sempati Air and flag carrier Garuda.
Privately owned Sempati, Indonesia's second largest carrier, has postponed an initial public offering scheduled for late 1996. According to Dedet Suardhyka, the airline's corporate secretary, local investor interest was focused on the larger issue to privatise Indonesia's national bank (BNI). 'Because of the very large BNI issue, we decided this was not the right time,' explains Suardhyka.
Sempati will wait before setting a new offer date, but the second quarter of 1997, after Indonesia's general election, is the most likely time if the IPO goes ahead at all this year. But Suardhyka stresses Sempati is not committed to a 1997 offering and he denies speculation that the delay is due to uncertainty caused by the upcoming election.
Sempati sold 40 per cent of its shares in a private placement last year, and plans to offer another 15 to 25 per cent in its IPO, generating US$100-150 million.
The same concerns prompting Sempati to delay its offering could also effect any privatisation of flag carrier Garuda. Government-owned companies slated for sale are in a privatisation queue and are being sold off one at a time. Any delay thus effects all others. Reports suggest that Garuda's flotation could now go ahead in 1998, with the state selling only 25 per cent.
In the carrier's current state, the government may be hard pushed to find any buyers, however. The foreign ownership limit for any Indonesian company stands at 49 per cent. Garuda is refusing all requests for interviews.
Source: Airline Business
