The Government Could Sell Shares of Private Companies

The government previously only allowed to buy shares of public companies.

Government more freely invest their funds in shares. If the previous coverage is limited to public companies' stock, now the government can own shares of State Owned Enterprises (SOEs), Regional-Owned Enterprises (enterprises), and even share private company of limited liability status.

"Government Investment Center (PIP) will we prepare to represent the government and have flexibility in running its activities," said Finance Minister Agustin Martowardojo in his office, Jalan Wahidin, Jakarta, Friday, March 25, 2011.

According to Agus, the Ministry of Finance has issued the Regulation of the Minister of Finance (PMK) No. 44/PMK.05/2011 on the Implementation of Government Investment in force March 9, 2011. This rule represents a change of FMD Number 181/PMK.05/2008.

In this new provision of article 6 in the government's change in FMD Number 181/PMK.05/2008. With this change, the investment through the purchase of shares by the government from which previously only on shares issued by a public company, can now be done on the shares issued by state-owned enterprises, enterprises owned by local and / or business entities, private limited company.

Agus explained that the issuance of Regulation of the Minister of Finance on the investment of the Government Investment Company issued in order to add flexibility in investing.

In addition, the new PMK is expected to provide certainty in government investment in the form of stronger activity. "Some time ago, alternative (investment) is not open to non-public companies," he said.

As alluded to whether the PMK is something to do with government efforts to buy shares divestment of PT Newmont Nusa Tenggara by 7 percent, Agus explained it is not directly have anything to do.

Moreover, the divestment of shares of Newmont, the central government has the right to buy shares of companies mining copper and gold.