Govt issues ruling on state companies
Govt issues ruling on state companies
JAKARTA (JP): The government has issued a new regulation on
state companies to boost their efficiency and competitiveness
amid the monetary crisis, the Ministry of Finance announced
yesterday.
The new ruling gives the Minister of Finance the sole right to
supervise state companies.
In the previous ruling, the Minister of Finance was the
nominee shareholder of all state companies but the supervisory
rights were jointly shared by related ministries.
Under the new ruling, the Minister of Finance may ask the
Director General for the Supervision of State Enterprises,
individuals, or agencies to represent her or him at the state
enterprises shareholders meeting.
Ministry spokesman Agus Haryanto told The Jakarta Post that
government regulations No. 12 and No. 13 issued last Saturday
stipulated that state companies should work as limited
liabilities companies.
As such, state companies have to follow Law No 1 of 1995 on
limited liabilities companies, he said.
The new rulings stipulate state enterprises should place an
emphasis on profit-seeking activities although they were assigned
by the government with special tasks of promoting small-scale
enterprises and cooperatives, Agus said.
State companies which record profit in two consecutive years
will be prepared to become public companies.
The rulings also state that commissioners and directors of
state companies have the tenure of five years in line with Law No
1 of 1995.
Under the previous rulings, commissioners' tenure lasts three
years, while directors' last five years.
The new rulings also stipulate that state enterprise employees
follow the law on manpower, instead of the law on public
servants.
The rulings also stipulate that all the documents on state
enterprises' activities which are currently managed by related
ministers should be delivered to the Minister of Finance by April
17 this year at the latest.
The documents will be managed in accordance with the new
rulings, according to the regulation. (jsk)