Fri, 19 Aug 1994

Unqualified opinion for Pertamina from BPKP

JAKARTA (JP): The Government Audit Agency (BPKP) yesterday awarded an 'unqualified' opinion on the 1992-93 financial statement of the state oil company Pertamina, making it the fifth such opinion in the last five years.

A Pertamina spokesman, Didi Sunarwinardi, told a press conference here yesterday that, based on the audited financial statement, the company's net profit declined from Rp 969 billion (US$448 million) in 1991-92 to Rp 807 billion ($373 million) in 1992-93.

Didi said that the 16.7 percent decline in profits was caused mainly by the appreciation of the U.S. dollar against the rupiah and the drop in oil prices between April 1992 and March 1993.

Concerning the unqualified opinion, Didi said that it was received after BPKP audited the company's financial report, based on certain aspects such as qualification, policies and procedures.

However, he acknowledged that there were still certain non- material things that should have been corrected with the financial statement.

Yesterday's announcement was rather unusual given the absence of the company's president and BPKP officers.

Didi said Pertamina's total sale revenues increased slightly to Rp 20.52 trillion in 1992-93 from Rp 17.75 trillion in 1991- 92.

Domestic sales contributed Rp 14.96 trillion to the sales revenues and exports in the last fiscal year, which amounted to 3.26 trillion.

The company's assets rose to Rp 19.63 trillion as of March 1993 from Rp 18.75 trillion as of March 1992.

Pertamina, which has been affected by declines in oil prices, is now conducting five-year restructuring programs, including efficiency improvement, reduction in the number of employees and the establishment of profit centers, to maintain its profitability.

The company is gradually reducing the number of its employees from 46,000 to 33,000 within five years. Around 1,000 employees have requested early retirement under the company's streamlining programs.(05)