'State firms used to fund parties'

SUKABUMI, West Java: A political analyst has warned that state enterprises could become cash cows of political parties to finance their electoral campaign.

Rizal Mallarangeng of the Freedom Institute said on Saturday the absence of good governance in state enterprises was the main reason for the practice.

There are 162 state enterprises in the country with total assets amounting to Rp 800 trillion (US$95 billion) and dividends totaling Rp 10.4 trillion. The enterprises contribute Rp 14 trillion to state revenue in taxes, according to Freedom Institute data.

In the past many state enterprises served as a cash cow for the ruling party Golkar.

The electoral campaign will take place from March 11 to April 1 2004, with the legislative election slated to be held on April 5. --JP