Govt issues ruling on state companies<\/p>\n
JAKARTA (JP): The government has issued a new regulation on
\nstate companies to boost their efficiency and competitiveness
\namid the monetary crisis, the Ministry of Finance announced
\nyesterday.<\/p>\n
The new ruling gives the Minister of Finance the sole right to
\nsupervise state companies.<\/p>\n
In the previous ruling, the Minister of Finance was the
\nnominee shareholder of all state companies but the supervisory
\nrights were jointly shared by related ministries.<\/p>\n
Under the new ruling, the Minister of Finance may ask the
\nDirector General for the Supervision of State Enterprises,
\nindividuals, or agencies to represent her or him at the state
\nenterprises shareholders meeting.<\/p>\n
Ministry spokesman Agus Haryanto told The Jakarta Post that
\ngovernment regulations No. 12 and No. 13 issued last Saturday
\nstipulated that state companies should work as limited
\nliabilities companies.<\/p>\n
As such, state companies have to follow Law No 1 of 1995 on
\nlimited liabilities companies, he said.<\/p>\n
The new rulings stipulate state enterprises should place an
\nemphasis on profit-seeking activities although they were assigned
\nby the government with special tasks of promoting small-scale
\nenterprises and cooperatives, Agus said.<\/p>\n
State companies which record profit in two consecutive years
\nwill be prepared to become public companies.<\/p>\n
The rulings also state that commissioners and directors of
\nstate companies have the tenure of five years in line with Law No
\n1 of 1995.<\/p>\n
Under the previous rulings, commissioners' tenure lasts three
\nyears, while directors' last five years.<\/p>\n
The new rulings also stipulate that state enterprise employees
\nfollow the law on manpower, instead of the law on public
\nservants.<\/p>\n
The rulings also stipulate that all the documents on state
\nenterprises' activities which are currently managed by related
\nministers should be delivered to the Minister of Finance by April
\n17 this year at the latest.<\/p>\n
The documents will be managed in accordance with the new
\nrulings, according to the regulation. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-issues-ruling-on-state-companies-1447893297",
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"sponsor": "Okusi Associates",
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