Habibie to unveil plans to develop state firms<\/p>\n
JAKARTA (JP): President B.J. Habibie is set to announce on
\nWednesday new basic plans for the development of state
\nenterprises, including a plan to raise the salaries and benefits
\nof company management, ahead of the June general election.<\/p>\n
State Minister for the Empowerment of State Enterprises Tanri
\nAbeng said on Tuesday that the plans were designed to boost the
\nperformance and value of state companies to reach international
\nstandards.<\/p>\n
\"The remuneration system is a very important part of the
\nmanagement system to boost the performance of state enterprises
\nto be comparable to that of world-class operators,\" he told
\nreporters after opening a seminar on state enterprises and the
\nprivatization program.<\/p>\n
Tanri said further details would be provided after the plans
\nare announced.<\/p>\n
Sofyan Djalil, a deputy at the ministry, said the current
\nsalary system in state enterprises is not realistic for
\nencouraging management to boost operations to world standards.<\/p>\n
He mentioned as an example the CEO at state electricity firm
\nPLN. He receives a monthly salary of Rp 10 million (about
\nUS$1,175) but is responsible for managing several billion dollars
\nin assets and nearly 60,000 employees.<\/p>\n
\"We are currently designing a competitive renumeration and
\nincentives system,\" Sofyan said, adding that the ministry had
\nappointed a team of independent consultants for the task.<\/p>\n
Toga Sitompul, president of state-owned Surveyor Indonesia,
\nwelcomed the proposal, saying it would raise the professionalism
\nand ability of the management of state enterprises to an
\ninternational level.<\/p>\n
He said that under the new basic plans, the government would
\nalso introduce an institute for the development of corporate
\nleaders.<\/p>\n
\"The professional standards at our state enterprises is far
\nlower than the international average,\" said Toga, who will also
\nbe one of the executives of the institute.<\/p>\n
Widigdo Sukarman, president of state Bank BNI, said efforts to
\nraise the performance and value of state enterprises are
\nimportant if the government's privatization program is to be
\nsuccessful.<\/p>\n
He said \"preparations\" had to be made immediately so that
\nstate companies would be ready for privatization once the capital
\nmarket regained stability.<\/p>\n
The government is planning to privatize 14 companies in the
\n1999\/2000 fiscal year in a bid to raise US$1.5 billion in cash.<\/p>\n
The privatization candidates for the next couple of years have
\nalso been disclosed in the privatization blueprint.<\/p>\n
Sofyan said that mining companies PT Tambang Timah and PT
\nAneka Tambang, plantation firm PT Perkebunan IV, and Soekarno
\nHatta international airport operator PT Angkasa Pura II were in
\nthe process of being privatized in the current fiscal year. (rei)<\/p>",
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