Fri, 24 Apr 1998

Tanri will keep his eye on 159 state companies

JAKARTA (JP): State Minister of the Empowerment of State Enterprises Tanri Abeng will be fully responsible for overseeing the management of the country's 159 government-owned firms, it was announced yesterday.

Coordinating Minister for Development Supervision and State Administrative Reforms Hartarto said the President would soon issue a decree on the handover of the companies.

According to Hartarto, 119 of the companies are wholly owned by the government, 34 are joint ventures and six are publicly listed companies.

"The minister of finance will remain as a shareholder of those companies but the management is under the state minister of empowerment of state enterprises," Hartarto said after meeting with Soeharto at his residence on Jl. Cendana, Central Jakarta.

Hartarto was accompanied by Minister/State Secretary Saadilah Mursjid in the meeting during which they reported to Soeharto on the country's 164 companies.

Among the affected ministries are the Ministry of Trade and Industry, which will have to hand over its 36 companies, the Ministry of Finance which will lose 30 companies, including PT Bank Negara Indonesia, the Ministry of Forestry and Plantations, 20, the Ministry of Communications, 16 including PT Garuda Indonesia and PT Telkom, the Ministry of Public Works, 16 including PT Jasa Marga, the Ministry of Mines and Energy, 8 including PT Freeport Indonesia, and the Ministry of Agriculture, 6 companies.

Hartarto said 10 strategic industries, formerly controlled by the Strategic Industries Supervisory Agency (BPIS), would also be supervised by Tanri.

The 10 firms were merged into one company last year.

"Companies which serve public utilities (Perum) will however remain under the control of the technical ministries," Hartarto said.

The policy is in response to the government agreement with the International Monetary Fund (IMF) in April which requires the President to issue a decree giving the Office of the State Minister of the Empowerment of State Industries full responsibility and accountability for the state's 164 companies.

Hartarto however said some of the companies would not be completely separated from the technical ministries, like the Ministry of Transportation with Garuda and the Ministry of Mines and Energy with the State Electricity Firm, PT PLN.

"Such cooperation is still needed," Hartarto noted. (prb)