State firms book profits of Rp 9.32t<\/p>\n
JAKARTA (JP): State-owned companies recorded significant
\nimprovements in their financial performances last year, with
\ncombined pre-tax profits rising by 20.5 percent to Rp 9.32
\ntrillion (US$4.05 billion) from Rp 7.73 trillion in 1994.<\/p>\n
The Ministry of Finance's Director General for State
\nEnterprises, Bacelius Ruru, said yesterday that the financial
\nimprovement came from increased efficiency.<\/p>\n
Speaking at a hearing of Commission VII of the House of
\nRepresentatives, for finance and trade, Ruru said the improvement
\nin the financial performances also reflected the increase in the
\nnumber of state companies categorized as very healthy.<\/p>\n
Tax payments from state companies increased to Rp 2.02
\ntrillion in 1995 from Rp 1.93 trillion in 1994, Ruru told the
\ncommission.<\/p>\n
Dividends paid by the state firms to the government increased
\nto Rp 1.48 trillion last year from Rp 1.39 trillion in the
\nprevious year, he said.<\/p>\n
Ruru said that the number of state companies classified as
\n\"very healthy\" increased to 92 last year from 85 in 1994, while
\nthose categorized as \"unsound\" declined to 86 from 97.<\/p>\n
He explained that the total number of the country's state
\nfirms declined to 178 last year from 182 in 1994 as the result of
\nthe government's consolidation programs.<\/p>\n
In 1994, for example, PT Pengelola Kawasan Berikat Nusantara
\nmerged with PT Kawasan Berikat Nusantara, while PT Semen Tonasa
\nin South Sulawesi and PT Semen Padang in West Sumatra were
\nconsolidated into the East Java-based cement plant, PT Semen
\nGresik.<\/p>\n
The Ministry of Trade and Industry directly oversees 33 state
\ncompanies, the Ministry of Agriculture 22, the Ministry of
\nFinance 29, the Ministry of Transportation 17, the Ministry of
\nPublic Works 19, the Ministry of Mines and Energy seven, the
\nMinistry of Post, Telecommunication and Tourism seven, the
\nMinistry of Forestry six, the Ministry of Defense and Security
\ntwo, the Ministry of Health four, the Ministry of Information
\nfour, the Ministry of Manpower one, the Ministry of Education one
\nand the Strategic Industry Supervising Board 10.<\/p>\n
Some other state-owned companies are overseen by Bank
\nIndonesia and non-ministerial offices.<\/p>\n
The Ministry of Finance, by law, is the sole shareholder of
\nthe state-owned companies, which had total assets of more than Rp
\n358 trillion at the end of 1994, but their daily activities are
\noverseen directly by related ministries or government offices.<\/p>\n
Ruru explained that the government would continue
\nrestructuring programs in the state-owned companies to allow them
\nto operate as efficiently as private firms.<\/p>\n
He said the programs include the consolidation of their
\noperations and management into other, related, companies and
\nprivatizations through local and offshore stock exchanges or
\nthrough direct placement.<\/p>\n
Ruru said the government is now preparing the initial public
\noffering of the shares of a number of state companies, including
\nBank Negara Indonesia, toll operator PT Jasa Marga, subsidiaries
\nof the electricity company PLN, steel corporation PT Krakatau
\nSteel, port management firm PT Pelabuhan Indonesia II, PT
\nRajawali Nusantara Indonesia, a diversified business group, state
\nplantation firms and the national flag carrier PT Garuda
\nIndonesia.<\/p>\n
Ruru told the House members that state companies which go
\npublic or sell their shares to the public should meet certain
\ncriteria, such as booking profits in the past two consecutive
\nyears. Furthermore their paid-up capital should be at least Rp 50
\nbillion, with a minimum rate of return on equity of 7.5 percent.
\nThe debt equity ratio should be a maximum of 7.3 for life
\ninsurance companies, 4.8 for those operating in the property
\nindustry, 19 for those involved in banking activities and 1.8 for
\nthose operating in other business sectors. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-firms-book-profits-of-rp-932t-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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