VEEP: govt to reduce number of state companies from 139 to 69 by 2009
Jakarta (ANTARA News) - Vice President M Jusuf Kalla said the government in the next years will have to reduce the number of state owned companies from 139 to 60 through privatization, mergers or liquidation.
"The target in 2009 is set at 69 state owned companies. Some of them should be merged, privatized or liquidated," he said after attending a limited meeting at the state entreprises ministry here on Monday.
Of the 139 state owned companies, only 102 would be left in 2007, 86 in 2008, and 69 in 2009. Hopefully, the total number will be further reduced to 25 by 2015, Kalla said.
"The data are the result of an internal research by the state enterprises ministry under a coordination with the relevant agencies and the House of Representatives," he said, adding that "We have the strategy to determine the state companies which will be merged, divested or liquidated."
Kalla also said that state firms` profit before tax this year is projected to reach Rp88.75 trillion, up by 22.50 percent from the projected Rp72.44 trillion in 2006.
State firms` expenditures are expected to increase sharply by 62.78 percent to Rp114.10 trillion from the projected Rp 70.10 trillion in 2006, he said.
The vice president said the meeting highlighted the state firms` past and present performances.
The state firms must raise their investment for the benefit of the nation, he said.
"Many state firms are very good in terms of performance and financial capacity, and only a few are not good and must be improved," he said.
The vice president recounted that state firms were set up under conditions prevailing at the time of their establishment. Consequently, some of them were engaged in the services sector, while others in the manufacturing industry.
In the meantime, State Entreprises Minister Sugiarto said his side has made a road map on putting through its plan to privatize state companies including carying out feasibility studies.
"There are some groups which have made detailed feasibility studies, but more important is to give attention on a certain sector," he said.
In a short term, it is also expected that in 2007 and 2008 five state owned companies (telecommunications company PT. Telkom, state oil and gas firm PT. Pertamina, holding mining and state gas and holding plantations) which will have finalized the process of restructuring are ready for global competition.
Asked about the companies to be merged or privatized this year, the minister said he did not remember. (*)
"The target in 2009 is set at 69 state owned companies. Some of them should be merged, privatized or liquidated," he said after attending a limited meeting at the state entreprises ministry here on Monday.
Of the 139 state owned companies, only 102 would be left in 2007, 86 in 2008, and 69 in 2009. Hopefully, the total number will be further reduced to 25 by 2015, Kalla said.
"The data are the result of an internal research by the state enterprises ministry under a coordination with the relevant agencies and the House of Representatives," he said, adding that "We have the strategy to determine the state companies which will be merged, divested or liquidated."
Kalla also said that state firms` profit before tax this year is projected to reach Rp88.75 trillion, up by 22.50 percent from the projected Rp72.44 trillion in 2006.
State firms` expenditures are expected to increase sharply by 62.78 percent to Rp114.10 trillion from the projected Rp 70.10 trillion in 2006, he said.
The vice president said the meeting highlighted the state firms` past and present performances.
The state firms must raise their investment for the benefit of the nation, he said.
"Many state firms are very good in terms of performance and financial capacity, and only a few are not good and must be improved," he said.
The vice president recounted that state firms were set up under conditions prevailing at the time of their establishment. Consequently, some of them were engaged in the services sector, while others in the manufacturing industry.
In the meantime, State Entreprises Minister Sugiarto said his side has made a road map on putting through its plan to privatize state companies including carying out feasibility studies.
"There are some groups which have made detailed feasibility studies, but more important is to give attention on a certain sector," he said.
In a short term, it is also expected that in 2007 and 2008 five state owned companies (telecommunications company PT. Telkom, state oil and gas firm PT. Pertamina, holding mining and state gas and holding plantations) which will have finalized the process of restructuring are ready for global competition.
Asked about the companies to be merged or privatized this year, the minister said he did not remember. (*)