'State firms must cooperate with foreign entities'
JAKARTA (JP): State-owned plantation firms PT Perkebunan Nusantara I to XIV will have to establish alliances with foreign partners in the future if they are to survive international competition, an official said yesterday.
The head of the sugar, molasses and tobacco division of the plantation companies' joint marketing office, Jack Laybahas, said that the alliances will enable the firms to penetrate the international market and expand their distribution networks.
He said the alliances should be established with companies located in export markets as well as with their governments.
All cooperation, he said, should be aimed at accommodating the transfer of technology, the development of human resources and managerial skills and to expand marketing networks.
Earlier this year, the government restructured the state plantation firms by merging 26 into 14 entities to boost their efficiency.
The 14 plantation firms, renamed as PT Perkebunan Nusantara I-XIV, were established with a paid-up capital of between Rp 300 billion (US$130,434) and Rp 1.7 trillion each.
Laybahas was quoted by a statement issued by the Ministry of Agriculture yesterday as saying that alliances will help increase the competitive edge of the commodities produced by the plantation firms.
He pointed out that engaging in partnerships with foreign entities will also help ease many complicated procedures such as licensing, marketing and the provision of raw-material, labor, technical assistance and other local economic resources.
"Another advantage is that we can anticipate the negative impacts of globalization, such as dumping practices and piracy. Alliances will help the partners complement what the others don't have and change rivalry into cooperation," he said.
The commodities with the potential to be developed under partnership programs are palm oil, rubber, tea, coffee and cacao.
The transfer of technology for palm oil processing in particular is now urgently needed, Laybahas added. (pwn)