West Java DPRD Demands Halt to Loss-Making Businesses at Jasa Sarana

Bandung (ANTARA) - Commission III of the West Java Regional House of Representatives (DPRD) is pressing the management of the regional-owned enterprise (BUMD) PT Jasa Sarana to immediately halt all loss-making business lines and carry out a total evaluation in order to salvage the region’s remaining assets.

This follows the drastic erosion of the infrastructure BUMD’s finances, with assets shrinking by Rp500 billion, compounded by an annual operational deficit of Rp3 billion.

“Businesses that have so far failed to generate profit, and have even caused losses, must be promptly evaluated and stopped. Conversely, the company needs to focus more on developing business sectors that remain productive and have the potential to generate profits, so that its financial condition can recover,” said Jajang Rohana, Chairman of Commission III of the West Java DPRD, in a statement issued in Bandung on Saturday.

According to the results of Commission III’s in-depth audit and evaluation, the total value of PT Jasa Sarana’s assets, which was previously recorded at above Rp1 trillion, is now estimated to stand at only around Rp500 billion.

The situation has been exacerbated by outstanding company debts of between Rp170 billion and Rp180 billion. As a result, the net assets genuinely owned by the BUMD have shrunk to roughly Rp400 billion.

In response to the financial crisis, Commission III is encouraging PT Jasa Sarana to take immediate tactical steps towards financial recovery through asset optimisation.

One option is the disposal of unproductive (idle) assets, with the proceeds to be allocated as capital reinforcement for business lines considered to have bright prospects.

Jajang stressed that the DPRD’s close oversight aims to ensure the BUMD returns to a healthy and professional function, so it can contribute maximally to West Java Province’s own-source revenue (PAD) rather than becoming a burden on the regional budget.

“Improving management is the main key. With good governance, more focused business management, and asset optimisation, we are optimistic that PT Jasa Sarana can return to a healthy financial condition and make a maximum contribution to the West Java Provincial Government,” he said.