Clarification on privatization

Referring to the news report published in The Jakarta Post on Oct. 5, 1994 and reports in other media quoting the statement by Minister of Administrative Reforms TB Silalahi after giving a speech before the working conference of the department of Religious Affairs on Oct. 4, 1994 in Jakarta, we wish to clarify as follows:

1. What was meant by the Minister is that the status of the state-owned television station (TVRI) is changed into State-owned Enterprise (BUMN), so that the business can be managed more professionally just like a private company. The Minister did not mean privatization of the institution.

2. In this context, a feasibility study is being done involving Departments of Information, Finance, Office of Administrative Reforms and Cabinet Secretariat. The problems resulting from the change are very complex because various aspects are involved i.e. law, funding and employees' status.

3. The Office of Administrative Reforms is particularly studying matters concerning the change of status of the employees and the BUMN.

SAPTA NIRWANDAR

Chief of General Bureau

Office of Administrative Reforms

Jakarta