JP\/13\/BUMN<\/p>\n
SOEs claim efficiency measures improving bottom line<\/p>\n
Adianto P. Simamora
\nThe Jakarta Post
\nJakarta<\/p>\n
Five state-owned enterprises (SOEs) have claimed that they were
\nable to save some Rp 7.4 trillion (about US$810 billion) in
\noperational expenses after efficiency measures were implemented
\nin November 2001.<\/p>\n
The five companies are: toll road operator PT Jasa Marga; port
\noperator PT Pelabuhan Indonesia II (Pelindo); national flag
\ncarrier PT Garuda Indonesia; telecommunications firm PT Telkom
\nand oil plantation firm PT Perkebunan Nusantara IV (PTPN IV).<\/p>\n
Darmin Nasution, the director general of financial
\ninstitutions at the Ministry of Finance, said on Thursday that
\nthe efficiency programs could further prevent hundreds of
\nbillions of rupiah in potential losses in the coming years.<\/p>\n
\"If the five companies continue to carry out the efficiency
\nprogram as recommended by the auditors, they will save some Rp
\n740.56 billion a year,\" Darmin said.<\/p>\n
The efficiency program is part of the government's reform
\nprogram at a number of SOEs, which was agreed to with the
\nInternational Monetary Fund (IMF).<\/p>\n
The government appointed several independent auditors to audit
\nthe efficiency performance of five SOEs from 1995 to 1999.<\/p>\n
The auditors then provided each company with recommendations
\nthat had to be carried out in order to improve their efficiency
\nperformance and help implement good corporate governance.<\/p>\n
\"The audit provided good momentum for the five companies to
\nreform their operational systems,\" Darmin said.<\/p>\n
The auditors were: Pricewaterhouse Coopers (PwC) and Hadi
\nSutanto & Co, which audited Garuda and Jasa Marga; Arthur
\nAndersen and Prasetio Utomo & Co, which audited Pelindo II; and
\nRSM International and Amir Abadi Jusuf & Co for PTPN IV and
\nTelkom.<\/p>\n
Telkom, for example, claimed that it had managed to save some
\nRp 5.2 trillion in operational costs from November 2001 to
\nDecember 2002.<\/p>\n
The company said that it had implemented several measures,
\nincluding corporate restructuring and buying out the shares of
\nseveral joint operation partners of the regional divisions in
\nSumatra and Kalimantan.<\/p>\n
National flag carrier Garuda reported that it had saved Rp
\n120.3 billion.<\/p>\n
Garuda claimed that it had so far improved 129 points out of
\nthe 205 recommended by the auditors.<\/p>\n
Garuda incurred losses partly from operating unprofitable
\nroutes, such as to the United States and Europe.<\/p>\n
According to its report, the company has cut several
\nunprofitable routes, carried out corporate restructuring and set
\nup a new crew base in Denpasar, Bali, in addition to Jakarta to
\nhelp reduce costs in relocating crew members.<\/p>\n
PTPN IV reported that it had saved some Rp 1.5 trillion after
\ncarrying out the corrective action recommended by the auditors.<\/p>\n
Among the efficiency measures that were implemented were
\nboosting the production capacity of palm oil and cocoa and
\nimproving the quality of the yields.<\/p>\n
Meanwhile, Jasa Marga predicted that it would be able to avoid
\npotential losses worth some Rp 6.4 trillion in the coming years
\nif the efficiency measures were continued.<\/p>\n
From November 2000 to December 2001, Jasa Marga saved some Rp
\n495 trillion.<\/p>\n
One of the efficiency measures it implemented was terminating
\nits agreement of the Jakarta Outer Ring Road (JORR) project with
\nold investors who failed to live up to their financial
\nobligations.<\/p>\n
Meanwhile, Pelindo said that it could prevent further
\npotential losses amounting to an annual Rp 77.3 million in the
\ncoming years.<\/p>\n
The audit on the five companies was the second lot after the
\nfirst audit was of oil and gas firm Pertamina, electricity firm
\nPT PLN and the State Logistics Agency (Bulog).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13bumn-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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