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.