State-owned Inhutani I posts $13.86m in pretax profits
State-owned Inhutani I posts $13.86m in pretax profits
JAKARTA (JP): State-owned forestry firm PT Inhutani I reaped a
pretax profit of Rp 31.88 billion (US$13.86 million) last year,
more than double its pretax profit for 1995, company president
Abdoel Fattah said yesterday.
Fattah said Inhutani I's 1996 pretax profit had exceeded the
company's budget target by 148 percent, and was 104 percent
higher than the its pretax profit for 1995.
But the company only gained Rp 174.58 billion in total
revenue, or 71 percent of its target and 54 percent above its
total revenue for 1995.
From its core forestry business, the firm sold 579,949 cubic
meters of logs to local wood-based industries. This was only 72
percent of its target for last year and 99 percent of its 1995
sales volume.
"The sale of logs was short of the target because of
unfavorable economic conditions," Fattah said.
Inhutani I produced 798,782 cubic meters of logs last year, or
84 percent of its target and 94 percent of its production in
1995. The logs were harvested over 26,551 hectares.
Fattah said Inhutani expected to reap a pretax profit of Rp
28.05 billion this year, 12 percent lower than last year's pretax
profit.
The profit projection was based on the assumption that
economic conditions this year would be similar to those last
year, he said.
Fattah said Inhutani I's low profit target for this year was
"realistic" because sales of timber and timber products would be
more restricted by "green movements" of environmentally-aware
consumers.
He said Inhutani I, one of six state forestry enterprises, did
not earn much in its product-diversification and wood-processing
businesses such as door and window production.
Minister of Forestry Djamaludin Suryohadikusumo has repeatedly
called on plywood companies to restructure their industrial
facilities because large-diameter logs, which are used by plywood
firms, are becoming scarcer.
Most wood-based firms in Indonesia produce plywood.
Djamaludin said wood-based firms should move into industries
that used small-diameter logs such as medium density fiberboard
and pulp and paper industries.
Fattah, who was accompanied yesterday by Director of
Production Sri Soediharto and Director of Finance Soewarni, said
the government should give more independence to state firms.
He said that, although state firms had a big moral
responsibility to the state and the people, they should be
allowed to operate like private enterprises in business.
"On one hand, state firms have an extensive role, but on the
other, they are limited by rules and bureaucratic regulations
which make it hard for them to move dynamically," he said.
Fattah said it was time the government deregulated these rules
and gave state firms a bigger say, particularly in profit-seeking
activities.
Soediharto said Inhutani I, for example, was required by law
to make bids for procurements of large quantities of goods and
services. And the firm was not allowed to make its own annual
logging plans.
"This is very time-consuming because everything must be done
in many stages," he said.
Soewarni said state firms had to be audited by at least three
different government offices.
"It is very frustrating because if we had a choice, we would
rather pay a public auditor and save a lot of time. We have our
own money, so we should be able to use it as we like," she said.
(pwn)