*DJ Indonesia Garuda Privatization Hoped Complete By 1H '07 -Min

(MORE TO FOLLOW) Dow Jones Newswires

February 19, 2007 08:01 ET (13:01 GMT)

Copyright (c) 2007 Dow Jones & Company, Inc.

DJ Indonesia Garuda Privatization Hoped Complete By 1H '07 -Min

JAKARTA (Dow Jones)--The Indonesian government hopes the privatization of debt-ridden state airline PT Garuda Indonesia will be completed in the first half of this year, a minister said Monday.

The government announced earlier this year that it is seeking strategic investors to purchase up to 49% of the flag carrier.

Sugiharto, the Minister for State Owned Enterprizes' Affairs, told reporters that "interest has been great" from investors so far.

(MORE TO FOLLOW) Dow Jones Newswires

February 19, 2007 08:02 ET (13:02 GMT)

Copyright (c) 2007 Dow Jones & Company, Inc.

DJ Indonesia Garuda Privatization Hoped Complete By 1H '07 -2-

Garuda has said it needs strategic investment to allow it to proceed with refinancing a $749 million debt.

Darjoto Setyawan, managing director at Indonesian conglomerate the Rajawali Group, has said that Rajawali is interested in acquiring a stake in Garuda. Texas Pacific Group has also been rumored as a possible investor.

Separately, Sahala Sianipar, the head of a governmental restructuring team assigned to oversee the Garuda sale, said that so far only Rajawali has submitted a formal proposal to buy Garuda.

-By Reuben Carder and Linda Silaen, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com

(END) Dow Jones Newswires

February 19, 2007 08:39 ET (13:39 GMT)

Copyright (c) 2007 Dow Jones & Company, Inc.