Minister to revamp state firms<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nsaid here yesterday that the government would restructure state-
\nowned companies in a move to boost their efficiency.<\/p>\n
Tunky said the restructuring plan would cover both improvement
\nof the management and the consolidation of business activities.<\/p>\n
"Money losing firms, which have no future, would be
\nliquidated. Those with good prospects would be expanded," he told
\nnewsmen following a meeting with President Soeharto at the
\nlatter's Jl. Cendana residence here.<\/p>\n
Tunky said that state-owned companies which have similar
\nbusiness lines would be consolidated under a restructuring plan
\nwhich was proposed by Minister of Finance Mar'ie Muhammad.<\/p>\n
"We don't have a fixed schedule. But we have been asked by the
\nminister of finance to immediately carry out the plan," said
\nTunky, who was accompanied by Mar'ie during the meeting with the
\nPresident.<\/p>\n
The minister of finance, which represents the government in
\nthe ownership of state-owned firms, did not make any comment
\nabout the restructuring plan.<\/p>\n
"The consolidation of fertilizer producers, for example, will
\nbe part of the restructuring plan in the Ministry of Industry and
\nTrade," Tunky said.<\/p>\n
He said the number of state-owned companies operating in
\nindustrial and trading activities totaled 62 as of December,
\n1995. The number of money losing firms rose to nine last year
\nfrom eight in 1994.<\/p>\n
Revenues<\/p>\n
Tunky said that the total sales revenues of the state-owned
\nindustrial and trade-related companies rose to Rp 9.56 trillion
\n(US$4.1 billion) in 1995 from Rp 7.79 trillion in 1994, with
\nbefore tax profits rising to Rp 1.06 trillion from Rp 633.63
\nbillion.<\/p>\n
The amount of losses incurred by state-owned firms rose to Rp
\n108.33 billion last year from Rp 82.74 billion in 1994, he said.<\/p>\n
The minister also reported to the President about efforts to
\ncope with the shortage of urea fertilizer supplies, which hit
\nfarmers in almost all paddy producing areas in Java and Sumatra
\nin December and January.<\/p>\n
At a press briefing held following the meeting with the
\nPresident, Tunky blamed the distribution system for the shortage
\nof urea supplies.<\/p>\n
Tunky ruled out any increase in exports as the cause of the
\nsupply shortage, given the fact that none of the fertilizer
\nproducers were licensed to export urea during the last two
\nmonths.<\/p>\n
He said that the amount of the monthly supplies would be
\nincreased so that there would be more stocks to meet an increase
\nin the demand from farmers.<\/p>\n
The urea supply was projected at 6.14 million tons this year,
\nwhile demand might reach only four million tons, the minister
\nsaid.<\/p>\n
Tunky also said yesterday that the government was targeting an
\nincrease in the cement supply to 28.5 million tons this year from
\n24.3 million tons to meet higher demand.<\/p>\n
Around 26.5 million tons of the supply would be procured from
\ndomestic producers, while the other two million tons would be
\nimported, he said.<\/p>\n
The domestic demand for cement was expected to increase by 16
\npercent to 27.5 million tons this year from 24.1 million tons in
\n1994. (hen)<\/p>",
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