City told to simplify joint venture running<\/p>\n
JAKARTA (JP): A city councilor underlined yesterday the
\nnecessity to simplify management of the city's joint ventures
\nwith private companies in the campaign to whip them into better
\nfinancial shape.<\/p>\n
Head of City Council Commission B for economic affairs Djafar
\nBadjeber urged the city administration to put management of the
\njoint ventures under one roof with the City Investment Management
\nAgency (BPIPM).<\/p>\n
Entrusting the agency to handle the management was important
\nto prevent any overlap in the ventures' supervision, Djafar said,
\nadding that the current involvement of the City Regional Economic
\nAgency (Binekda) in the supervision was redundant.<\/p>\n
Due to the absence of clear-cut criteria and control
\nmechanisms by the agencies, it was unsurprising that the
\nadministration was unable to fully monitor the development of
\ncompanies' performances, he said without elaborating.<\/p>\n
\"To avoid any further confusion, the administration should
\nimprove BPIPM's role as the sole agency supervising the joint
\nventure companies.\"<\/p>\n
Data shows that of 48 registered joint venture companies owned
\nby the city, 21 are under supervision of Binekda and the other 27
\nunder BPIPM. \"Actually there are still a number of other joint
\nventures, but it is unclear to which agency they have to report
\ntheir performance.\"<\/p>\n
Calculation<\/p>\n
According to the calculation of the 1997\/1998 city budget,
\nonly 11 joint venture firms provided no profit to the
\nadministration or made contributions in amounts far lower than
\nprojected.<\/p>\n
Joint ventures whose contributions fell short were PT
\nPembangunan Jaya which deals with construction, PT Kawasan
\nBerikat Nusantara (warehousing), PT Bumi Grafika Jaya (printing),
\nPT Cemani Toka (paper ink), PT Alumindo Perkasa (aluminum
\nproducts), PT Ratax Armada (taxi service) and PT Pakuan
\nInternational (hotel, cottage and golf enterprises).<\/p>\n
Those which gave no contribution at all were PT Determinan
\nIndah (aluminum production), PT Abatoir Surya Jaya (frozen meat),
\nPT Jaya Nur Sukses and PT Graha Sahar Suryajaya, both involved in
\nthe hotel business.<\/p>\n
Djafar also urged the administration yesterday to revoke a
\njoint venture agreement between PT Bumi Grafika Jaya with
\nprivately run PT Gesit Alumas because the terms were considered
\nto cause losses to the administration.<\/p>\n
He said the agreement, signed last year, gave PT Gesit much
\ngreater authority despite its limited shares.<\/p>\n
PT Gesit's share reached only Rp 4 billion, compared to the Rp
\n43 billion put up by the administration, he said.<\/p>\n
\"Even though the administration has a bigger share, it has
\nless of a role as is shown by the absence of city representatives
\nin the board of directors. We only have three out of the five
\ncommissioners in the company.<\/p>\n
\"The percentage is not fair,\" he said. (ind)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/city-told-to-simplify-joint-venture-running-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }