May 07, 1999
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| May 07, 1999 | atimes.com | |
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| Southeast Asia Indonesia to reduce 160 state-owned firms to 15 JAKARTA - The Indonesian government has said it plans to reduce the 160 state enterprises to 15 holding companies. State Minister in charge of state enterprises Tanri Abeng said a draft plan is being studied involving a number of ministries and it is expected to be completed in three months. Abeng said the streamlining of the 160 state-owned companies is part of the reform program for state enterprises. The reform program involves restructuring and privatization of companies including state enterprises. ''The aim is to make state enterprises more efficient, reliable as profit earners and world class corporates,'' Abeng said. Abeng admitted that the plan would cause some worker layoffs. ''But rationalization is more in the level of directors. A company, now run by 5 to 6 directors, would have ouly two directors,'' he said. He said he has asked the Finance Ministry for funds to pay foreign consultants, who would work together with Indonesian counterparts to handle a study to determine an ideal number of workers needed by a company. Each of the 15 holding companies would oversee companies operating in one sector. Citing an example, he said, a bank holding company would control all state banks. He said that during his one-and-a-half years in office, state-owned companies entering the category of healthy entities had increased to 68 percent from 59.8 percent. He said that the income of state enterprises, not including banks and electricity companies, rose 55.2 percent to Rp81.7 trillion ($10.21 billion) in 1998 from 1997. Meanwhile, their profit before tax surged 94 percent to Rp17.6 trillion. (Asia Pulse/Antara) | |||||||||
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