Eleven state firms lose more than Rp 182.61 billion

JAKARTA (JP): At least eleven state-owned enterprises under the Ministry of Industry and Trade last year suffered a combined loss of Rp 182.61 billion (US$76.08 million), the ministry said yesterday.

A statement issued by the Ministry of Trade and Industry said the losses were mostly in textile, paper, dock and shipment and trading businesses.

The 11 companies are among 68 state firms under the ministry that have submitted their 1996 calender year financial reports. The ministry currently oversees 76 state-owned enterprises.

The remaining 57 firms booked a combined pretax profit of Rp 1.5 trillion last year, 41.46 percent higher than the Rp 1.06 trillion earned in 1995.

Combined profit increased because of higher profits earned by fertilizer and cement businesses supported by better fertilizer and cement prices on export and domestic markets.

Several trading firms also increased sales and cost effectiveness, the statement said.

The 68 firms' total sales last year were Rp 10.63 trillion, up 11.09 percent from Rp 9.57 trillion in 1995.

Taxes

The firms last year paid Rp 1.1 trillion in taxes, Rp 716.57 billion in value-added tax, Rp 265.19 billion in corporate income tax, Rp 51.53 billion in employee income tax and Rp 70.44 million in other taxes.

In 1995, the companies paid Rp 296.64 billion tax, 36.75 percent less than last year.

"These tax contributions exclude dividends from state enterprises as most 1996 financial reports are still being audited by the Development Finance Comptroller or have yet to receive shareholders' approval," it said.

The government owns 51 percent or more of 32 of the 76 companies overseen by the Ministry of Industry and Trade.

Seventeen of the 76 firms are 51 percent or more owned subsidiaries of state-owned firms.

Eight are joint ventures between the government and the private sector, in which the government owns less than 51 percent.

Nineteen are joint ventures between state firms overseen by the Ministry of Industry and Trade, in which the state firms own less than 51 percent, and private sector firms or other ministries' firms.

Last year the 76 enterprises employed 62,799 people, down 1.4 percent from 63,690 in 1995. The decline was caused by the restructuring of several firms and retirement.

According to the Ministry of Finance, there were 166 state- owned companies in the country. 34 percent of them were classified as financially very unsound and 16.9 percent unsound last year.

The ministry, the nominee shareholder of the state-owned, said last week that the proportion of very unsound and unsound state companies last year declined from 35.4 percent and 17.4 percent respectively in 1995.

He said the percentage of very sound companies declined to 42 percent last year from 47 percent in 1955 and fairly sound companies increased from 37 percent to 39 percent.

The finance ministry rates a company's soundness on its liquidity, profitability and solvency. (pwn)