Govt plans to deregulate state firms<\/p>\n
JAKARTA (JP): The government will deregulate state-owned
\nenterprises to prepare them to compete with private firms,
\nMinister of Finance Mar'ie Muhammad said yesterday.<\/p>\n
Speaking at a hearing with the budgetary commission of the
\nHouse of Representatives, Mar'ie said that the planned
\nderegulation will cut \"paper\" procedures for state-run companies.<\/p>\n
Mar'ie said that after the deregulation state-owned
\nenterprises will no longer be required to follow the current
\nprocedures, which involve a number of related departments.<\/p>\n
\"In preparing their financial reports, for instance, state-
\nowned companies will follow a one-step mechanism through internal
\naudits as is the case with privately run enterprises,\" Mar'ie
\nsaid.<\/p>\n
Director General of State-owned Companies Bacelius Ruru said
\nyesterday his office was drafting the deregulation moves, which
\nare expected to be announced next year.<\/p>\n
A number of legislators have questioned the government's
\nseriousness about improving state-owned companies, especially
\nthose which continually suffer losses.<\/p>\n
\"Just look at the Jakarta-based, city-owned PPD transit
\nservice, which has recorded losses for several years. To me, it
\nseems irrational that PPD should suffer losses every year,\" Muba
\nKahar Muang, a legislator of the ruling Golkar political
\ngrouping, said.<\/p>\n
Muba, a former director at one of Jakarta's best taxi firms,
\noffered her services to PPD to make the company a profitable
\nfirm.<\/p>\n
\"Just give PPD to me, I'll help make it a profitable
\nenterprise. I have already made some calculations,\" Muba said.<\/p>\n
Responding to the criticism, Mar'ie said that the public
\nshould understand that state-owned enterprises shoulder a double
\nburden, the mission of catering to the people's interests and the
\nmission of collecting profits.<\/p>\n
Not fair<\/p>\n
\"When their feet are tied together like now, it is not fair to
\nask them to compete with privately-owned firms,\" Mar'ie said.<\/p>\n
He cited the fact that a number of state-owned firms overseen
\nby the Ministry of Forestry had been assigned to open industrial
\ntimber estates in remote areas for transmigrants from Java. It
\nwould be impossible for any private company to accomplish such a
\ntask, Mar'ie said.<\/p>\n
\"Any private enterprise tries their best to run a business
\nwhich promises high returns with least possible risks. But it is
\nnot the case with state-owned companies,\" Mar'ie said.<\/p>\n
The minister said the government, as the shareholder of state
\nfirms, must be the one to sacrifice for the interests of the
\npeople. \"If not the government, who else?\"<\/p>\n
Mar'ie said the government is committed to allowing state-
\ncontrolled companies, especially those directly related to the
\npublic's interests, to retain 30 percent of their net profits for
\nexpansion programs. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-to-deregulate-state-firms-1447893297",
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