State companies management better now than in the past: Minister

Jakarta (ANTARA) – State-owned Enterprises (SOEs) Minister Rini Soemarno said the management of state-owned companies in the past four years had been much better that it was in the past five years, reflected in the reduced number of SOEs reporting losses.

“At the end of 2014, many SOEs were in trouble as 34 state-owned enterprises were listed as losing money. Now, almost all SOEs report healthy financial conditions. Some are still in the process of restructuring,” Rini said during an interview with a national television station in Jakarta, Monday.

Rini said one of the past mistakes in the management of SOEs was with regard to directors who always tried to cover up various issues.

“There were problems that were swept ‘under the carpet’. Directors of SOEs in the past thought they were happy, got bonuses, and left problems to be resolved by the next board of directors. This must be stopped,” she stressed.

Speaking about her huge responsibility to stop problems, she said, “I am well aware that all the problems of the past have not been resolved. But in the past five years, we have fixed them,” she said.

Describing the efficiency brought about among the SEOs, especially the bigger ones, in the last four years, she said,” PLN (the state electricity company) is now profitable. In the past, 34 electricity projects were stalled. Thank God, now, almost everything can be resolved.”

In addition, in 2018, PT Pertamina (the state oil company) saw a profit of more than US$2 billion; Garuda Indonesia (the country’s flag carrier) has been profitable even though it is still relatively small, around 900 thousand US dollars, or far better than that of the previous year.

Likewise, Krakatau Steel (the state steel company) is currently conducting a business restructuring that is expected to see benefits in 2019.

Source: ANTARA News