State firm regulations affect five timber firms

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)