Fri, 25 Jan 2008
From: The Jakarta Post
By The Jakarta Post, Jakarta
The performance of a total 31 state-owned companies in the logistics and tourism sectors showed encouraging progress last year in earnings and profits, a senior official said.

Total revenues rose by 14.7 percent to Rp 40.4 trillion (about US$4.3 billion) in 2007 from Rp 34.4 trillion in 2006. In 2005, the companies posted Rp 32.3 trillion in revenue, according to Harry Susetyo Nugroho, deputy to the state minister of state enterprises.

In profits, the companies increased to Rp 3.2 trillion in 2007 from Rp 2.4 trillion in 2006, Harry told a hearing with the House of Representatives' Commission VI on industry, investment, SMEs and state enterprises.

The companies made Rp 2.5 trillion in profit in 2005.

Contributing the highest to increased revenue and profit were mainly companies like national flag carrier PT Garuda Indonesia Airline and shipping firm PT Pelni, which were both in the red in previous years but bounced back to return to the black in 2007.

Garuda posted a profit of Rp 250 billion in 2007 after a loss of Rp 197 billion in 2006 and Rp 588 billion in 2005. Pelni made Rp 88 billion last year in profit, after suffering a loss of Rp 127.8 billion in 2005.

In addition, Harry said, Garuda and another state carrier PT Merpati Nusantara Airlines received capital injections from the government worth Rp 1 trillion and Rp 450 billion, respectively.

"As for Garuda, the Rp 1 trillion funds have not been used as its performance is improving," said Harry on Thursday.

Merpati had used Rp 290 billion of the money for maintenance works and debts payments.

"Merpati failed to meet its target on improving its cash flow, so we plan to reevaluate the target this year," said Harry.

Elsewhere, the government restructured heavy machinery company PT Rukindo's management in early 2006 and made state-owned sea-port operators PT Pelindo I, PT Pelindo II, PT Pelindo III and PT Pelindo IV its foster parent companies, he said.

"All four Pelindo companies last year gave Rp 80 billion to Rukindo to support its working capital."

To improve the performance of state-owned hotel group PT Hotel Indonesia Natour (HIN), the government negotiated with Djarum Group to refurbish one of HIN's hotels, the iconic Hotel Indonesia.

Hotel Indonesia, located in Central Jakarta near the famous circle intersection called Bunderan HI (Hotel Indonesia), was the first hotel in the country.

Harry said starting in 2004 Djarum Group had leased Hotel Indonesia's complex on 6.2 hectares of land for 30 years to build an integrated commercial center named Grand Indonesia.

Commenting on the government's action on improving its hotels business, the chairman of the commission Didiek J. Rachbini suggested the government privatize the hotel group.

"I suggest the government focus on the transportation businesses, such as Garuda, instead of hotels. Private companies do better on hotels, so leave the business to them," he added without elaborating. (nkn)



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