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)