Eleven city-owned firm to be privatized<\/p>\n
JAKARTA (JP): The city administration will gradually privatize
\n11 city-owned companies in their effort to increase
\nproductivity and regional revenues.<\/p>\n
Deputy Governor for Economic Affairs Tb. M. Rais said
\nyesterday that the privatization program will soon begin with
\nthree of the eleven companies.<\/p>\n
"The three companies to be privatized in the near future are
\nSarana Jaya, which is in charge of property construction, BPL
\nPluit in industrial area management and Wisata Niaga in hotel
\nmanagement," Rais said in a press conference.<\/p>\n
The vice governor said that the three companies were chosen
\nfor the first round because they have fulfilled all
\nthe requirements to qualify for privatization.<\/p>\n
Head of city economic affairs office Albert Napitupulu said
\nthat the requirements for privatization include profitability
\nover the last two years, good management and adequate human
\nresources.<\/p>\n
"The plan to privatize the three firms has to get approval
\nfrom the Ministry of Home Affairs," Albert said.<\/p>\n
He expressed confidence that approval of the three companies
\nwill be given soon. The privatization process of the three firms
\nwill be completed in three years, he added.<\/p>\n
Albert explained that the 11 companies overseen by the city
\nadministration this year have combined assets of Rp 2.9 trillion
\n(US$1.31 billion). Their assets are projected to increase to
\nRp 3.6 trillion next year.<\/p>\n
"The total profits of the 11 firms this year are projected to
\nreach Rp 47.8 billion, up from Rp 30.4 billion last year. The
\nprofits are expected to jump to Rp 82 billion next year," he said
\nwithout giving details.<\/p>\n
Albert said that out of the 11 companies, only Pulo Gadung
\nindustrial estate authority, is not yet profitable.<\/p>\n
Preparations for the privatization of the rest of the
\ncompanies, including PD Pasar Jaya which in charge of market
\nmanagement, PAM Jaya in water, Bank DKI in banking and Dharma
\nJaya in slaughtering, are currently being made, he said.<\/p>\n
"Only Bank DKI will not be privatized. The bank will go public
\nby selling 10 percent of its shares on the local stock exchange,"
\nAlbert said.<\/p>\n
Rais also explained that the privatization plan has caused
\npsychological problems among employees because many of them are
\nreluctant to become private employees.<\/p>\n
"Many employees are still hoping to reach higher career as
\ncivil servants," Rais said.<\/p>\n
He explained that by changing their status to private
\nemployees status is expected to enable them to concentrate on
\nways of how to increase profits for their companies and make
\ntheir companies competitive with other private firms. (yns)<\/p>",
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