3 strategic companies lose money

JAKARTA (JP): Three of the 10 companies under the Strategic Industry Management Board made losses in 1995, according to a report delivered to the House of Representatives yesterday.

Giri Suseno, an executive of the board, told a hearing of House Commission X for science, technology and research that the board's number of unprofitable companies had fallen from six in 1994.

The strategic industrial firms which lost money in 1995 are aerospace company PT IPTN, shipbuilder PT PAL and weapons maker PT Pindad.

"IPTN lost Rp 185.55 billion (US$78.6 million) in 1995, PAL Rp 18.91 billion and Pindad Rp 21.23 billion," Suseno said.

The 10 companies' total assets were valued at Rp 11.82 trillion at the end of 1995, including Rp 4.86 trillion in debts and posted total sales of Rp 3.58 trillion.

PT Krakatau Steel was the most profitable of the board's firms in 1995 with a Rp 257 billion pretax profit, followed by telecommunications equipment maker PT Inti with Rp 48.8 billion and railway-car maker PT Inka with Rp 10.8 billion, Suseno said.

He said the 10 companies had not received equity capital from the government since 1995.

"We do not intend to ask for additional government equity funds this year," he told House members.

The board is chaired by B.J. Habibie, who is also the president of IPTN and state minister of research and technology.

A report prepared for the meeting showed that the 10 firms had 40 subsidiaries or joint venture companies, but details on these are unavailable. (vin)