Indonesia to sell 10 pct stake of state-owned gas company

Indonesia plans to sell as much as 10 percent stake of state-run gas distributor PNG this year, part of a strategy to bridge budget deficit, local media reported on Tuesday.

"For PNG, the stake that will be sold is maximum 10 percent," State Enterprises Minister Sugiharto was quoted by the Jakarta Post as saying.

The PNG stake, of which the government owns 60.2 percent, fell by 25 rupiahs (0.0028 US dollar) or 0.8 percent, to 3.075 rupiahs (some 0.0034 US dollar) on Monday at the Jakarta Stock Exchange.

The government this year aims to raise 3.5 trillion rupiahs ( some 3.6 billion US dollars) by selling stakes of state-owned companies, according to the country's 2005 budget.

Indonesia's deficit is swelling as higher fuel prices increase fuel subsidy expenditure.

This year budget deficit may rise to 35.2 trillion rupiahs ( some 36.2 billion US dollars) or 1.3 percent of the gross domestic product (GDP), compared with the targeted 20.3 trillion rupiahs ( about 21.3 billion US dollar) or 0.8 percent of the GDP, according to the government.

Source: Xinhua