BUMN: Govt cash cows<\/p>\n
It is no secret that state-owned enterprises (BUMN) have long
\nbeen the government's cash cows.<\/p>\n
This may have come about because the companies are closed to
\nthe public and the government has been able to unlawfully exploit
\nthe companies via legal means. The government calls these BUMN
\n'agents of development with social functions'.<\/p>\n
Since the International Monetary Fund (IMF) came to Indonesia,
\none by one, the BUMNs have been 'stripped' by thorough auditing.
\nThe National Logistics Agency (Bulog), state oil and gas company
\nPertamina and state electricity company PLN were audited from
\n1999 to 2000, amid strong reactions from both the public and the
\ncompanies' managements. The audits showed that the companies had
\nsuffered financial losses.<\/p>\n
Another five state enterprises -- PT Garuda Indonesia, PT Jasa
\nMarga, PT Telkom, PT Pelabuhan Nusantara II and PT Perkebunan
\nNusantara IV -- were audited later, with similar conclusions.<\/p>\n
Last week, the Ministry of Finance announced the results of an
\naudit on another five BUMN: PT Dirgantara Indonesia, PT Kereta
\nApi Indonesia, PT Pupuk Sriwijaya, PT Taspen and PT Semen Gresik.
\nThe independent auditors revealed that the total financial losses
\nof the five amounted to more than Rp 17 trillion, and that the
\nlosses were due to the companies' failure to perform in
\naccordance with international standards.<\/p>\n
The enterprises' financial losses were not the impact of the
\ncompanies poor management systems -- government policies, such as
\nthose for PT Kereta Api Indonesia and Pupuk Pusri, played a
\nsignificant role.<\/p>\n
State enterprises are just like private companies, and are
\nprofit-oriented, and the government benefits from their dividends
\nand taxes.<\/p>\n
It is time for state-owned enterprises to be freed from their
\nobligation to public service -- which is mainly the
\nresponsibility of the government. This way, state enterprises may
\nimprove their performance and competitiveness.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bumn-govt-cash-cows-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }