House agrees SOE merger plan<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The House of Representatives has approved the government's plan
\nto merge three state-owned firms in the trade sector as part of
\nefforts to turn them into a more efficient and competitive
\nbusiness entity.<\/p>\n
The approval was given on Thursday following a hearing between
\nthe companies and House Commission V on trade and industry
\naffairs.<\/p>\n
The three firms -- namely PT Pantja Niaga, PT Dharma Niaga and
\nPT Cipta Niaga -- would form a new company called PT Perdagangan
\nNiaga with combined assets of around Rp 5.6 trillion (about
\nUS$640 million).<\/p>\n
Cipta Niaga president Doris S. Herlambang told the hearing
\nthat as all produced the same products and used the same
\ndistribution chains, the plan should be helpful in focusing the
\ncompany and enabling it "to improve its bargaining position with
\nsuppliers."<\/p>\n
She said a government ruling had been issued to serve as the
\nlegal basis for the merger.<\/p>\n
Aside from the three, Indonesia currently has another two
\nfirms also covering the trade sector. They are PT Sarinah and PT
\nBandha Graha Reksa.<\/p>\n
Of the three firms to be merged, only Cipta Niaga managed to
\nrecord a pre-tax profit in 2002, amounting to Rp 49.6 billion.
\nDharma Niaga and Pantja Niaga posted Rp 335 million and Rp 7
\nbillion in losses respectively.<\/p>\n
In the hearing, some lawmakers voiced the need for the company
\nnot to use the decision as an excuse for massive lay-offs, which
\nwould have the potential to create negative side-effects.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-agrees-soe-merger-plan-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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