Directors of city-owned firms called in for crisis meeting

JAKARTA (JP): The city administration will summon executives of its seven wholly owned and 48 partly owned firms to disclose their companies' latest financial details this week, an official said yesterday.

Deputy Governor for economic and financial affairs, Harun Al Rasyid, said the companies would be classified as either profitable, modest or unsatisfactory on the strength of their performance.

"Companies which have contributed nothing to the city's revenue will be classified as unsatisfactory and be sold off," Harun said.

Those listed in the other two categories would be retained and improved, he added.

According to Harun, the meeting, which is likely be held tomorrow, will also allow the city administration to review its cooperation with counterparts in 48 joint ventures.

The seven companies owned entirely by the city are PD Pembangunan Sarana Jaya, which has construction interests and manages the city's assets; PD Dharma Jaya, a slaughterhouse operator; market operator PD Pasar Jaya; hotel and tourism company PD Wisata Niaga Jaya; PD Air Minum Jaya, which supplies the city with drinking water; waste water management company PD PAL Jaya; and Bank DKI.

Speaking on condition of anonymity, a member of staff at the city's regional economic bureau (Binekda), which supervises some of the firms, argued that most of the companies had suffered significant financial difficulties since last year because of the monetary crisis.

"Many of them contributed to the city's income every year before the crisis broke," said the official.

He said companies like Sarana Jaya and Bank DKI, and a joint venture like PT Pembangunan Jaya, a construction company run in cooperation with property tycoon Ciputra had always been able to meet their financial obligations.

The same applied to PT Delta Djakarta, a brewery run in cooperation with San Miguel, the source said.

He suggested the administration reconsider giving up shares and search for more promising partners for companies such as printing company PT Bumi Grafika Jaya, horse race management company PT Pulomas Jaya and taxi company PT Ratax. (cst)