Consolidation of state funds

Consolidation of state funds

From Media Indonesia

As a member of the House of Representatives Commission VI
representing the National Awakening Party faction, I would like
to express my views regarding State Minister of State Enterprises
Sugiharto's plan to place the partnership and environment
development fund (PKBL) or the small-scale businesses and
cooperatives fund (PUKK) under the control of PT Permodalan
Nasional Madani (PNM).

The PUKK was raised from channeling one to five percent of
state enterprises' net profit since 1989 for the purpose of
assisting small-scale businesses and cooperatives that do not
have access to the corporate banking system.

According to Sugiharto, the plan to consolidate management of
the two funds was initiated because of the state companies'
fairly high rate of stagnation, and because PT PNM will be able
to reduce the ratio of problem loans to less than three percent.

I do not agree with this plan to consolidate the funds,
because the idea was hastily conceived. Such a measure would
instead hamper disbursement and shrink the distribution capacity
of equitable funds.

HELMY FAISHAL ZAINI
Jakarta