IPTN, four other strategic firms unhealthy: Tanri
IPTN, four other strategic firms unhealthy: Tanri
JAKARTA (JP): Five of the state-owned 10 strategic industries,
including aircraft manufacturer PT Industri Pesawat Terbang
Nusantara (IPTN) are considered unhealthy, according to State
Minister of the Empowerment of State Enterprises Tanri Abeng.
The industries were previously controlled by the Strategic
Industries Supervisory Agency (BPIS), which was chaired by B.J.
Habibie, who is now the country's President.
IPTN, with assets of more than Rp 3 trillion, made a loss of
Rp 153.86 billion in 1996, Tanri told members of the House of
Representatives Commission V for industry during a hearing last
week.
He did not provide figures for IPTN's past performances, but
BPIS key executive Giri Suseno, now minister of communications,
said early last year that the company suffered Rp 185.55 billion
in losses in 1995.
The International Monetary Fund forced the government to stop
state spending for IPTN in January, as part of sweeping economic
reform programs to help lift the country out of its economic
crisis.
IPTN, which is a pet project of Habibie, who established the
company 23 years ago, is currently implementing a US$2 billion
jet project, which started in 1994 and initially designed to be
completed by 2002.
Tanri said the four other unhealthy industries are explosives
manufacturer PT Dahana, engineering firm PT Boma Bisma Indra,
military equipment manufacturer PT Pindad and electronics
manufacturer PT LEN Industri.
He said Boma and Pindad suffered losses of Rp 15.50 billion
and Rp 25.50 billion respectively in 1997, but that the other two
unhealthy firms made profits.
According to Tanri, the economic crisis has caused various
hardships for the strategic industries, including liquidity
problems due to their high debt to equity ratio, shrinking
domestic market, being highly dependent on imported materials and
components, and the cancellation of several state-funded
projects.
He said the other five strategic industries also had
relatively high debt to equity ratios.
The healthy industries are shipbuilder PT PAL Indonesia, train
equipment producer PT Inka, telecommunications equipment
manufacturer PT Inti, and steelmaker PT Krakatau Steel.
Tanri did not specify the condition of engineering firm PT
Barata Indonesia, but it did had a negative liquidity, even
though it made a net profit of Rp 22.60 billion last year.
He also reported that all of the strategic industries had a
very low return on investment, indicating that the companies were
not efficient.
The office of the State Ministry of State Enterprises was
established early this year with a mission to restructure 159
state companies, including privatizing 12 of them to raise Rp 15
trillion in the current 1998/1999 fiscal year ending in March.
State companies previously supervised by their related
ministries, including BPIS, are now under the supervision of
Tanri's office.
Tanri has expanded the number of strategic industries to 16
companies, and is planning to form a holding company, which is
expected to be launched next month. (rei)
Table: Performances of Strategic Industries, 1997 (Rp billion)
Company Health Sales Profit/ Asset
category loss
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PT Inka healthy 101.06 12.15 187.05
PT Inti healthy 728.65 79.66 1,061.49
PT Dok dan
Perkapalan Surabaya very healthy 96.02 3.01 98.69
PT Pal Indonesia very healthy 297.70 6.54 1,038.00
PT Industri Kapal Indonesia very healthy 37.90 0.63 103.13
PT Barata Indonesia - 101.31 22.59 162.28*
PT Krakatau Steel very healthy 3,002.00 182.03 5,645.24
PT Industri Gelas not healthy 46.11 3.04 260.29
PT Dahana not healthy 122.17 3.36 90.12
PT Boma Bisma Indra not healthy 96.32 (15.50) 197.97
PT Pindad not healthy 102.97 (25.49) 480.29
PT IPTN not healthy 369.57 (153.86) 3,040.00**
PT LEN Industri not healthy 76.53 2.38 125.36
PT Dok dan Perkapalan
Kodja Bahari - 151.56 (152.22) 689.72*
PT Batan Teknologi - 5.15 0.30 25.97
PT Survey Udara Penas - 2.78 0.19 14.38
* Based on 1997 projection
** Based on 1996 financial reports
Source: State Minister of the Empowerment of State Enterprises