Eleven city-owned firm to be privatized
Eleven city-owned firm to be privatized
JAKARTA (JP): The city administration will gradually privatize
11 city-owned companies in their effort to increase
productivity and regional revenues.
Deputy Governor for Economic Affairs Tb. M. Rais said
yesterday that the privatization program will soon begin with
three of the eleven companies.
"The three companies to be privatized in the near future are
Sarana Jaya, which is in charge of property construction, BPL
Pluit in industrial area management and Wisata Niaga in hotel
management," Rais said in a press conference.
The vice governor said that the three companies were chosen
for the first round because they have fulfilled all
the requirements to qualify for privatization.
Head of city economic affairs office Albert Napitupulu said
that the requirements for privatization include profitability
over the last two years, good management and adequate human
resources.
"The plan to privatize the three firms has to get approval
from the Ministry of Home Affairs," Albert said.
He expressed confidence that approval of the three companies
will be given soon. The privatization process of the three firms
will be completed in three years, he added.
Albert explained that the 11 companies overseen by the city
administration this year have combined assets of Rp 2.9 trillion
(US$1.31 billion). Their assets are projected to increase to
Rp 3.6 trillion next year.
"The total profits of the 11 firms this year are projected to
reach Rp 47.8 billion, up from Rp 30.4 billion last year. The
profits are expected to jump to Rp 82 billion next year," he said
without giving details.
Albert said that out of the 11 companies, only Pulo Gadung
industrial estate authority, is not yet profitable.
Preparations for the privatization of the rest of the
companies, including PD Pasar Jaya which in charge of market
management, PAM Jaya in water, Bank DKI in banking and Dharma
Jaya in slaughtering, are currently being made, he said.
"Only Bank DKI will not be privatized. The bank will go public
by selling 10 percent of its shares on the local stock exchange,"
Albert said.
Rais also explained that the privatization plan has caused
psychological problems among employees because many of them are
reluctant to become private employees.
"Many employees are still hoping to reach higher career as
civil servants," Rais said.
He explained that by changing their status to private
employees status is expected to enable them to concentrate on
ways of how to increase profits for their companies and make
their companies competitive with other private firms. (yns)