Govt told to delay merger of firms

Govt told to delay merger of firms

JAKARTA (JP): A commission of the House of Representatives
(DPR) wants the government to postpone a plan to merge three
state-owned transportation companies until it takes necessary
steps to improve their operations.

Zamroh Satar, a legislator of the Golkar faction, said in a
hearing between the House's Commission V and Minister of
Transportation Haryanto Dhanutirto here yesterday that the
government should first try to improve their operations by
injecting fresh funds into PT Djakarta Lloyd, PT Bahtera Adiguna
and PT Varuna Tirta Prakarsya -- three shipping companies -- in
order to strengthen their capital structures.

"If capital injection does not help, the government could then
consolidate the three unhealthy companies," she said.

Haryanto explained that the planned merger is meant to
strengthen the capital structures of the three companies and at
the same time improve their management and efficiency.

The planned merger will reduce overhead costs without any
personnel reductions, he said.

Haryanto also said the planned merger will help eliminate
disputes between the three companies, which have so far been
involved in conflicts of interest because they have similar
businesses.

Anwar Datuk of the Indonesian Democratic Party (PDI), who is
also deputy chairman of the commission, supported Zamroh's
proposal, which is in line with consolidation procedures
regulated in Law No. 19/1969 on state enterprises.

Haryanto said the three companies are not healthy in terms of
their liquidity, profitability and solvability. However, he did
not spell out their financial losses.

Profit

He told the commission, which is in charge of transportation,
public housing, tourism, post and telecommunications, that some
of the 17 companies overseen by his ministry netted a total
profit of Rp 112.1 billion (US$51.95 million) in the first three
months of this year.

The total profit equals nearly one-third of their total profit
of Rp 394.12 billion in 1993.

PT PeIabuhan II, which manages Tanjung Priok port in Jakarta,
for example, gained a profit of Rp 27.7 billion in the first
quarter, PT Pelabuhan III, which manages 32 ports, Rp 9.32
billion, Angkasa I, which manages 10 airports, Rp 14.8 billion,
and Garuda Indonesia, the national flag carrier, Rp 2.99 billion.
(02/icn)