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)