Two state firms to be turned into trading house

JAKARTA (JP): The government plans to convert two of its state-owned trading companies into a trading house to facilitate the country's exports, a minister said yesterday.

Minister of Trade and Industry Mohamad "Bob" Hasan said business associations would be allowed to buy shares of the trading house so they could become owners of the facility as well as members.

He said the trading house would operate as a joint marketing body for its members.

"Member companies will be able to get better access to foreign markets through the trading house," he said after a meeting with local textile companies.

Hasan, however, did not say which of the 159 state-owned firms would be converted. All state-owned companies are under the supervision of the newly established office for the empowerment of state enterprises.

Hasan said the trading house should not be interpreted as a new form of monopoly or cartel because it would not set the prices of the export goods.

"It has become hard for us to compete in the international market. That is why the government will offer associations membership in the trading house to better compete," he said.

He said the trading house would be open to all industries, but would be divided into several divisions. It would be managed by private professionals instead of civil servants, he said.

"But I want to stress that not all associations are required to join the trading house because it's voluntary," he said.

He did not specify when the trading house would be established, but said it would be in the near future.

The chairman of the Indonesian Textile Association, Bambang Riyadi Soegomo, expressed support for the plan yesterday.

Bambang said the trading house would enable its members to enter the export market without additional cost for negotiations.

He also said the facility would help exporters facing legal problems. (das)