PT PAL asks govt to pay its liability<\/p>\n
JAKARTA (JP): State-owned shipbuilder PT PAL has requested
\nthat the government pay its obligations to the company soon so
\nthat the company can start making money.<\/p>\n
PAL's senior executive vice president, Suleman Wiriadidjaja,
\nsaid yesterday that the company had not yet made a profit because
\nof its financial burden, mostly inflicted by the government.<\/p>\n
He said the government owes the company over Rp 250 billion
\n(US$106.5 million).<\/p>\n
"That's what's burdening us right now because we have to pay
\nRp 36 billion per annum out of the business in interest on debts
\ninflicted by the government," Suleman told journalists at his
\noffice yesterday.<\/p>\n
PAL is controlled by the Supervisory Board for Strategic
\nIndustries, which is chaired by State Minister of Research and
\nTechnology B.J. Habibie. It produces a wide range of vessels,
\nfrom commercial boats to naval craft. Habibie is also the
\npresident of PAL.<\/p>\n
Suleman said his company could not force the government to pay
\nits obligations because the procurement contracts signed by both
\nparties stipulated that payments would be met according to the
\ngovernment's financial capability.<\/p>\n
"However, we call on the government to soon pay its
\nobligations so we can clean up all the extraordinary liabilities
\nin our book keeping," Suleman said.<\/p>\n
He acknowledged that the government was still the largest of
\nPAL's customers, having purchased US$600 million worth of
\nvessels, mostly for naval ships, from the company.<\/p>\n
Other large customers of PAL include state-owned companies
\nsuch as the shipping firms, Djakarta Lloyd and Pelni, the
\nPertamina oil company and the PLN electric company.<\/p>\n
Domestic private businesses are the smallest of PAL's
\ncustomers because no special credit is available to them from
\ngovernment or financial institutions.<\/p>\n
"Financing is the most crucial issue in marketing our vessels.
\nLocal consumers always find it difficult to find sources of
\nfinance when they want to buy our vessels," Suleman said.<\/p>\n
He explained that two years ago his company signed a contract
\nwith PT Pan Maritim to build a 17,500 dead-weight-ton (DWT)
\ncontainer ship costing US$23.1 million. But the deal only
\nmaterialized last March after Pan Maritim secured finance from
\nthe Export-Import Bank of Japan and the Sumitomo Trust Banking
\nGroup of Japan.<\/p>\n
"This is, of course, not good for us because we are still
\ncommitted to building the vessel at the same price as two years
\nago," Suleman said.<\/p>\n
Soft loans<\/p>\n
To help local shipbuilders, Suleman suggested the government
\nor the central bank provide soft loans to those purchasing ships
\nbuilt by local dockyards.<\/p>\n
He warned that if the government did nothing to help, local
\nprivate businesses would continue to buy ships overseas,
\nespecially since the government has allowed foreign-made ships to
\nbe sold in Indonesia.<\/p>\n
To help local dockyards, the government established PT PANN
\nMulti Finance. Its purpose was to buy locally-made ships and
\naircraft, and lease them or sell them by installment.<\/p>\n
PANN Multi Finance, with soft loans from the central bank,
\nbought 32 Caraka Jaya 4,180 DWT container ships from PAL and
\nleased them to local shipping operators.<\/p>\n
"PANN Multi Finance does not buy and lease local ships anymore
\nbecause it cannot readily get soft loans from Bank Indonesia,"
\nSuleman said.<\/p>\n
To support its finance, PAL is trying to sell its ships
\noverseas where finance facilities for purchasing ships are
\navailable.<\/p>\n
He said that his company has overseas orders worth US$1.01
\nbillion for dozens of ships from customers in Germany, Britain
\nand the Netherlands.<\/p>\n
"We can now compete with shipbuilding firms in Europe even
\nwithout the government's support," Suleman said.<\/p>\n
He said the newest foreign order was from Reederai F. Laeisz
\nGmBH of Germany for two open hatch, 45,000 DWT ships. The German
\ncompany had earlier ordered two similar bulk carriers from PAL.<\/p>\n
Seatrade Gron. B.V. of the Netherlands has ordered four reefer
\nships of 500,000 cubic feet, with options for four more ships.
\nStephenson Clarke of Britain has ordered one bulk carrier of
\n18,500 DWT, with an option for one more ship.
\n(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-pal-asks-govt-to-pay-its-liability-1447893297",
"image": ""
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