The government will offer its entire 45per cent stake in state credit insurance firm PT Asuransi Kredit Indonesia (Askrindo) to strategic investors under this year's privatisation programme, a government official said.
"We will likely retain some of (Askrindo's) shares because no one may want to buy the entire stake," said Pandu Djajanto, an assistant to the State Minister for State Enterprises, so the government may still end up holding some shares in the credit insurance firm.
He said investors prefer government's continued presence in Askrindo as a guarantee against bad loans that the credit insurance firm may have to cover.
Askrindo was established in 1971 by the government and Bank Indonesia, which holds a 55 per cent stake in Askrindo, to help boost bank lending to small- and medium-sized enterprises (SMEs).
Bank Indonesia must sell its Askrindo's stake to comply with the new central bank law, which bans it from having subsidiary firms.
