SI and Sucofindo merger possible

SI and Sucofindo merger possible

JAKARTA (JP): The government is studying the possibility of
merging PT Surveyor Indonesia and PT Sucofindo to improve the
efficiency of the two surveyor companies, says a senior official.

Ministry of Finance's Director General for State Enterprises
Bacelius Ruru said yesterday that the government is also studying
the possible reorientation of the two surveyors' business
activities.

The two state-owned companies, which at present focus on the
inspection of Indonesia's exports and imports, could diversify
into quality assessment, he said

"The two state-owned companies have a good quality of staff to
carry out such a job," he told a hearing with the House of
Representatives' Commission VII for finance, trade and
cooperatives.

Members of the commission said the consolidation of the two
companies and the orientation of their business focus are
essential, given the expected sharp decline in their inspection
jobs in the coming years.

The abolishment of trade barriers due to under the free trade
principles of the World Trade Organization, or within other free
trade guidelines set under regional and multilateral
arrangements, will gradually reduce the roles of the two surveyor
companies.

Surveyor Indonesia, owned by Sucofindo and the Geneva-based
Societe Generale de Surveillance (SGS) and the Indonesian
government, has been assigned to conduct preshipment inspection
of Indonesia's imports in cooperation with SGS.

Ruru said that Surveyor Indonesia's contract to carry out
preshipment inspections of the country's imports would end on
March 31, next year.

"The termination of the contract with Surveyor Indonesia will
also mean the end of its contract with SGS," he said. He,
however, did not rule out the possible renewal of the cooperation
agreement with SGS when the current contract expires.

He said that in addition, the government has not decided
whether or not it will extend its contract with Sucofindo, which
at present handles preshipment inspections of several export
goods subject to some restrictions.

The pre-inspection of export goods is no longer important,
according to the country's newly introduced Customs Law. (hen)