Council slams inefficiency of city-owned ventures

Council slams inefficiency of city-owned ventures

Bambang Nurbianto, The Jakarta Post, Jakarta

The City Council's Commission B for economic affairs
condemned Governor Sutiyoso on Monday for not doing enough to
improve the performance of 23 city-owned and 12 joint venture
companies.

Councillor Dani Anwar of Commission B also questioned why the
joint ventures should employ many retired officials from the city
administration.

Dani, who was representing Commission B at a council plenary
session, made the comments as part of a statement setting out his
commission's response to Sutiyoso's 2001 budget statement, which
also covered the performance of the companies during the term of
his now almost five-year administration.

He quoted Sutiyoso's speech as saying that of the 35 city-
owned companies operating in Jakarta, only three companies had
made no contribution to city revenues, eight had not reached
their targets, 13 had reached their targets, and 11 had exceeded
their targets.

But in fact, he said some six firms made no contribution to
the city since their establishment.

"The city-owned companies, which had been projected to
contribute Rp 35.78 billion to the city, were only able to
contribute Rp 34.99 billion in 2001... This is evidence that
their management is still weak," said the Commission B statement.

The city-owned companies could still increase their
contribution to the city's revenues by improving efficiency and
cutting losses, according to the commission.

He gave as an example the fact that due to inefficiency, the
PD. AM Jaya water utility's debts had reached Rp 1.6 trillion in
2001 with interest payments reaching Rp 120 billion and
cumulative losses Rp. 837 billion.

According to Dani, among the former City Hall officials who
were employed by joint venture companies were former deputy
governor TB. M. Muis, the chief commissioner of PT Delta, Ongky
Kosasih, a commissioner of PT Cemani Toka, and Djoko Broto
Turano, a commissioner of PT Waserda Jaya.

Among the 12 joint venture companies which had made no
contribution to city revenues were PT Abattoir Surya Jaya, PT
Bumi Grafika Jaya, PT. Rheem, PT Cemani Toka, THR Lokasari, and
the Wisma Jaya Raya Foundation.

"It also shows that the representatives of the city
administration in these companies lack professionalism and do not
perform their jobs well," said the commission.

Dani also criticized Sutiyoso for staying on as the chief
commissioner of PD Pasar Jaya, the city-owned firm which controls
traditional markets in the city, up to 2001 without trying to
improve the firm's efficiency.

He gave as an example the fact that the company had spent Rp
2.3 billion on training courses -- including English, master of
ceremonies and security guard courses -- compared to the total
contribution it had made to the city's income last year, which
only amounted to Rp. 3.8 billion.