Tunky studying possible US$27m loss by PT Dok

Tunky studying possible US$27m loss by PT Dok

JAKARTA (JP): Minister of Industry Tunky Ariwibowo disclosed
yesterday that he was scrutinizing the Supreme Audit Agency's
report on the possible losses of Rp 61.5 billion (US$27 million)
by state shipbuilder PT Dok & Perkapalan Kodja Bahari.

Tunky acknowledged the House's Budgetary Commission in a
hearing here that the company might lose money from
miscalculations in contracts to build vessels for foreign
companies and its failure to collect tax payment from its
contractors.

"But the losses are likely not to reach that much," he said.

Legislators raised questions on the possible losses of Rp 59.6
million from Kodja Bahari's contracts with Swedish Redery A.B.
Gotland and United Tankers A.B. to build a passenger ship of
6,500 dead weight tons (DWT), a tanker of 16,000 DWT and three
other vessels.

They said the losses could be due to a miscalculation of
exchange rates and the establishment of certain facilities
especially designed to support the vessels' construction.

The Swedish buyers paid for their vessels in Swedish krona,
while Kodja Bahari financed its purchases of materials in German
marks and U.S. dollars. Furthermore, Kodja Bahari has to pay high
interest on its loans used for the construction of the
shipbuilding facilities.

Legislators also questioned Kodja Bahari's failure to collect
tax payments of about Rp 2 billion from companies supplying goods
and services for it.

Koja Bahari is a merger between three state-owned shipyards,
PT Dok & Perkapalan Tanjung Priok, PT Kodja Indonesia and PT
Pelita Bahari. They merged in 1991.

"The definite loss from Kodja Bahari's contract to build
vessels and tankers is being calculated and the sales tax payment
is still being processed," Tunky told the hearing, which was
chaired by I Gde Artjana.

Legislators also asked about improper procedures of the state-
owned industrial estate company PT Kawasan Industri Gresik in
East Java in awarding a civil works contract and purchasing cars.

According to the audit agency, Kawasan Industri Gresik awarded
a contract worth Rp 1.1 billion without tender bidding for road
construction and land reclamation. The company also bought two
cars and one jeep for the project without any tender. (kod)