Five state-owned firms unhealthy

Five state-owned firms unhealthy

JAKARTA (JP): Five of the eight state-owned trade-related companies have been classified as economically unhealthy, Minister of Industry and Trade Tunky Ariwibowo said yesterday.

"The five unhealthy trade-related companies are PT Dharma Niaga, PT Mega Eltra, PT Kerta Niaga, PT Cipta Niaga and PT Pantja Niaga, all of which operate in exports, imports and domestic trade," Tunky told the House of Representatives Commission VI for industry, mining, manpower and investment.

In addition to the five firms, the Ministry of Industry and Trade also oversees three other trade-related companies: PT Sucofindo, which provides survey and superintendence services; PT Bhanda Graha Reksa, which deals with warehousing and freight forwarding services; and PT Sarinah, which is engaged in retail and store-space rental service.

Tunky said the last three companies are in good health.

A commission member, Iskandar Mandji, proposed yesterday that the government merge all five unhealthy trading companies into one solid firm.

The ministry also oversees dozens of industrial companies.

Tunky said healthy companies with good prospects are being encouraged to expand with funds to be raised by going public or by establishing joint ventures with private firms.

"Companies in this category include those operating in the manufacturing of cement, fertilizer and consumer goods," he said.

Companies which are financially less sound but with good prospects -- such as those operating in shipbuilding, industrial estate management and the manufacture of paper and textiles -- will have their capital structures strengthened and managements improved before going public, he said. kod)