Consolidation of state funds

Tue, 25 Jan 2005 | Source: MEDIA INDONESIA

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

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