Unqualified opinion for Pertamina from BPKP

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)