Govt to maintain control on state firms<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad said
\nyesterday that the government would maintain its control over
\nimportant state-owned companies despite the liberalization trend
\nin the world economy.<\/p>\n
"We should not be overzealous and take unnecessary actions in
\nresponse to liberalization," he told a parliamentary session,
\nwhich will close tomorrow.<\/p>\n
The minister said that state-owned companies, especially those
\noperating in essential business fields, are still needed to carry
\nout the government's missions.<\/p>\n
The minister was answering a question about the government's
\nfuture policy on managing state-owned companies, which are often
\ncriticized for their poor business records.<\/p>\n
"Government control over important state-owned firms remains
\nessential even in a developed country," the minister told the
\nBudgetary Commission of the House of Representatives.<\/p>\n
The minister's remarks were made as the commission reviewed
\nhow the 1993\/1994 state budget was implemented.<\/p>\n
The minister said the government's pursuit of greater
\nliberalization does not imply a scrapping of control over state
\nfirms.<\/p>\n
Indonesia should strengthen business efficiency in all sectors
\nto enable the country to compete in this era of liberalization,
\nhe said.<\/p>\n
The government should be prepared to liquidate its losing
\nfirms for the sake of the national efficiency program. Otherwise,
\nhe added, their operations will become a problem to the country's
\neconomic system.<\/p>\n
The government has partly privatized four major state-owned
\ncompanies -- PT Semen Gresik, PT Tambang Timah, PT Indosat and PT
\nTelkom -- through local and overseas stock exchanges. Other major
\nstate-owned firms are now being prepared to follow suit.<\/p>\n
The government remains a majority shareholder despite the
\nprivatization of the major state-owned companies.<\/p>\n
There are more than 180 state-owned companies operating in the
\ncountry at present, with total estimated assets of around Rp 358
\ntrillion (US$162 billion).<\/p>\n
The Directorate General for State Enterprises said only 155
\nstate-owned firms are performing soundly, booking combined net
\nprofits of around Rp 4.5 trillion in the 1993\/1994 fiscal year.<\/p>\n
The state-owned companies, which mostly operate in less
\nprofitable business fields, are required to set aside up to five
\npercent of their net profits to help small-scale firms.<\/p>\n
The minister said that the requirement will not be relaxed. He
\nadded that the funds generated from state-owned companies would
\nnot only be used to support small-scale companies, but also to
\nstimulate economic activities in the country's least developed
\nvillages.(hen)<\/p>\n
Photo -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-to-maintain-control-on-state-firms-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }