State budget to gain Rp 8t from SOEs

The House of Representatives decided on Wednesday to approve a proposal to increase revenue obtained from state-owned enterprises (SOEs) to Rp 8 trillion (about US$800 million) from Rp 7.8 trillion.

Vice chairman of the House's state budget committee Paskah Suzetta said that for the 2002 state budget, revenue from SOEs, excluding oil and gas firm Pertamina, would be a minimum of Rp 8 trillion or an average of 50 percent of the companies' net earnings.

Including revenue from Pertamina, which is expected to be Rp 2.3 trillion, the total contribution from SOEs will reach Rp 10.3 trillion, compared to the initial total of Rp 8.2 trillion.

Bacelius Ruru, the secretary to the State Minister of State Enterprises, said the government targeted the SOEs to book net earnings of Rp 19.9 trillion in 2002.

Minister of Finance Boediono said the government only expected 80 percent of the target to be achieved based on past experience.

"If they (earnings) are higher, then that's good, but if not then it would mean we are distributing money that isn't there," he said in the hearing.

Boediono said that the government would try its utmost to provide the extra Rp 200 billion, and that the House should not force an SOE from paying an amount that would endanger its cash flow. -- JP