State firm regulations affect five timber firms

JAKARTA (JP): Five state timber companies PT Inhutani I to V will be treated like private timber firms due to a change in state enterprise operations regulations, a minister said yesterday.

Minister of Forestry Djamaludin Suryohadikusumo said his ministry would no longer be directly involved in the management of state timber companies.

He said he would no longer chair the companies' shareholders' meetings, for example, these would now be chaired by the Ministry of Finance's director general of state enterprises supervision.

"From now on, the ministry of forestry will only give technical supervision to state timber companies. If they need technical aid from the ministry they will have request this following the procedures set out for private companies, including that their presidents have to ask the minister directly for aid," he said.

Previously, the minister of forestry, as chief commissioner of state timber companies, received requests for aid during annual shareholders meetings.

Djamaludin, however, said that his ministry would continue to by directly involved in the supervision of the management of state forestry company Perum Perhutani.

Unlike the other five state timber companies Perum Perhutani will still conduct several non-profit oriented activities.

The government issued recently a set of new regulations related to the operations of state companies to speed up the process of privatization and efficiency.

According to the new regulations, the supervision of state companies will be handled by the Ministry of Finance.

Previously, state companies' were overseen by related ministries although the minister of finance was nominee shareholder.

"The transfer of supervision is partly to prevent companies from being overburdened with work from the related ministries," he said. (gis)