The Indonesian Bank Restructuring Agency (IBRA) has announced plans to sell three Salim Group subsidiaries through initial public offerings (IPO) by the end of this year.
The government agency is in control of many private companies including those of the Salim group in repayment of debts to the government.
Thomas Lembong, head of IBRA's Asset Management Investment Division said the three companies Indosiar television broadcasting company, Indomart retail company and Keris Mas house roofing material producer, are part of 11 subsidiaries of the Salim Group's to be sold soon.
IBRA holds 50% of Indosiar, 60% of Indomart and 70% of PT Keris Mas, all under PT Holdiko Perkasa, a holding company established by IBRA grouping companies pledged by the Salim Group to repay its Rp53 trillion ($6.1 billion) to the government.
The fund expected to be raised from the sales will be part of the Rp7.2 trillion target to be contributed by IBRA to the state budget this year.
Lembong said Indosiar is the most ready for an IPO, with operating cash flow tripling from the position last year.