Proceeds target for SOEs too burdensome: Official<\/p>\n
YOGYAKARTA (JP): A high-ranking official at the ministry of
\nfinance voiced here on Friday doubts over the ability of state-
\nowned enterprises (SOEs) to meet the profit and privatization
\ntargets set by the government, citing the unfavorable social and
\npolitical conditions.<\/p>\n
Director general for state enterprises I Nyoman Tjager
\nindicated that the targets were too burdensome.<\/p>\n
"It is not easy for the management of SOEs to meet the targets
\ngiven the current situation," Nyoman said following a workshop on
\nstate-owned enterprises at the Yogyakarta Sheraton Hotel.<\/p>\n
The workshop was organized by Gadjah Mada University's
\nDepartment of Economics.<\/p>\n
The government initially set the profit transfer target from
\nthe SOEs at Rp 10.5 trillion, but this target was revised
\ndownward to Rp 9 trillion last month.<\/p>\n
Minister of Finance Rizal Ramli recently announced that the
\ngovernment had raised the targets for tax and excise revenue,
\nprofit transfer from SOEs, asset recovery from the Indonesian
\nBank Restructuring Agency and the privatization of SOEs by
\nbetween 5 percent and 20 percent.<\/p>\n
Thus far there have been no details of the target increases
\nfor each sector.<\/p>\n
Nyoman said his office expected the SOEs' total profits this
\nyear to be Rp 19 trillion, up from Rp 12.3 trillion last year
\nfollowing the increase in the government's profit transfer
\ntarget.<\/p>\n
He also said the privatization target of Rp 6.5 trillion for
\nthis year would be difficult to meet for the SOEs.<\/p>\n
He asserted that the privatization of state enterprises had
\nattracted numerous investors, but the unfavorable social and
\npolitical conditions had discouraged them.<\/p>\n
"How can we do business if there is no certainty?" he said.<\/p>\n
Nyoman, however, pledged to meet the targets while demanding
\nthe SOEs be given a conducive climate to operate.<\/p>\n
"Just trust them (SOEs) and provide them with a good
\nenvironment to work in," he said.<\/p>\n
Nyoman also said the trend of regional governments seeking to
\nbenefit from the operation of SOEs in their areas, including
\ndemanding free stakes in the SOEs, had added to the burden
\nshouldered by the SOEs.<\/p>\n
He said it was not necessary for the regional administrations
\nto pressure the SOEs because they would benefit from their
\noperation in the end.<\/p>\n
He said the contributions from SOEs to the state budget would
\nbe distributed to the regional administrations in various forms
\nof financial aid.<\/p>\n
"State-owned enterprises also make an important contribution
\nto regional governments by providing jobs," he said. (44)<\/p>",
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