City-owned firms exempted from making contributions<\/p>\n
JAKARTA (JP): The city administration has exempted several
\ncity-owned companies from making contributions to the revenue
\noffice as their profits have dropped sharply due to the effects
\nof the economic crisis, an official said on Thursday.<\/p>\n
\"The obligation to make contributions is only imposed on
\ncompanies which make good profits,\" Deputy Governor for
\nDevelopment Affairs Budihardjo Sukmadi said.<\/p>\n
Without elaborating on the companies' financial condition, he
\njust said, \"What's important is that we have audited the
\ncompanies.\"<\/p>\n
On Wednesday, city councilors questioned Governor Sutiyoso's
\nstatement made when he submitted the 1999\/2000 draft budget to
\nthe city council that tap water company PDAM Jaya, construction
\ncompany PT Pembangunan Jaya and brewing firm PT Delta Jakarta
\nmight not be able to make financial contributions to the city.<\/p>\n
Budihardjo said that the administration decided not to force
\nPDAM Jaya to make a contribution in order not to prompt a tap
\nwater tariff hike.<\/p>\n
\"We have decided that the tariff won't be raised up to the
\nyear 2000,\" he said.<\/p>\n
Pembangunan Jaya and Delta Jakarta were not asked to make
\ncontributions as their profits have dropped substantially.<\/p>\n
Budihardjo said that exempting the companies from temporarily
\nmeeting their obligations was considered a wise decision.<\/p>\n
Head of the Indonesian Democratic Party Lukman Mokoginta said
\non Thursday that it was impossible that PDAM Jaya was unable to
\nmake a profit after cooperating with foreign companies.<\/p>\n
\"I think no companies would want to cooperate with a city
\ncompany if it doesn't make a profit. So please, be transparent,\"
\nhe said.<\/p>\n
PDAM Jaya cooperated with French company Suez Lyonnaise des
\nEaux to form Pam Lyonnaise Jaya and with British company Thames
\nWater Overseas Ltd. to set up Thames Pam Jaya to manage tap water
\nsupplies in the city early last year.<\/p>\n
According to the city administration data, there are 40 city-
\nowned companies. Revenues from these companies are projected to
\nreach Rp 55.52 billion in the 1998\/1999 fiscal year, down from Rp
\n61.39 billion in 1997\/1998.<\/p>\n
In a related development, PDAM Jaya head Rama Boedi announced
\non Thursday a plan to change his company's status into that of a
\nlimited liability company to enable it to be more flexible and
\ncompetitive.<\/p>\n
\"We plan to merge with water companies in Tangerang or
\nBekasi,\" he said.<\/p>\n
He said that the merger was mainly aimed at improving public
\nservice.<\/p>\n
A similar status change was implemented by the city-owned Bank
\nDKI earlier last month. (ind)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-owned-firms-exempted-from-making-contributions-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}