State firms lose 88b

JAKARTA (JP): Six state-owned enterprises overseen by the Ministry of Industry and Trade suffered total losses of Rp 88.68 billion (US$37.57 million) in 1995.

Minister of Industry and Trade Tunky Ariwibowo did not name the six losing companies but said that three of them were involved in the production of paper and textile, and shipping.

The other three were engaged in service activities.

"The losses were caused by high lending rates, unsound capital structure and machinery problems," the minister told a recent hearing with the Commission VI of the House of Representatives.

He said that most machines and equipment operated by the six state firms were outdated, with a limited production capacities.

The ministry would mend the management of the six companies to improve their performances, he said.

"To fix up the financial problems, we are also considering to sell the shares or non-profitable assets to other state firms as have been done to the liquidated PT Kertas Gowa and PT IMPI," Tunky said.

The ministry supervises 32 companies. Beside the six losing firms, other 10 were also classified as unhealthy, he said.

"The rest 26 firms were sound and gained around Rp 919 billion in profit before taxes in 1995," he said. (04)