The government has signaled that it will only sell the shares of PT Perusahaan Gas Negara Tbk (PGN), the state gas company, above the current market price.

Sugiharto, the State Minister for State-Owned Enterprises (SOEs), has said that the share price of the gas company is currently declining to around Rp12,000 per share.

This is lower than the previous price of Rp14,000 per share several months ago.

However, the government has said it wishes that the PGN shares are offered at their proper price.

Based on a recommendation of several analysts, according to Sugiharto, the proper price for the PGN shares is Rp18,000.

So, based on Sugiharto’s estimatation, this is not the exact moment to offer the shares to the public.

“We are still waiting for the right moment,” he said yesterday (30/8) in Jakarta.

Sugiharto is optimistic that within the next four months, the government will be able to offer the shares to the public.

This share offer is one of planned SOE privatizations this year.

The objectives are to increase government revenues as well as covering losses of the 2006 budget.

This year's privatization revenue target amounts to Rp3.3 trillion, but so far no SOEs have been sold nor privatized.

According to Sugiharto, the government will not face many obstacles in divesting PGN shares since the company is already listed on the stock exchange.

“The highest bidder wins,” he said.

Sugiharto however added that the government is still examining the options available and these will be decided through a Privatization Committee that has been established by the Finance Minister.