BUMN Privatization Expected to Contribute Rp 6.5 Trillion to 2002 State Budget
14 October 2003 11:00 WIB
The government is expected to reap Rp 6.5-trillionfrom the privatization scheme, where Rp 2.6 trillionwill be used to finance the budget deficit and Rp 3.9trillion to buy government bonds. According toLaksamana, the BUMN privatization will only succeed ifit obtains political support from the DPR and thetechnical department responsible for framing thepolicies.
Laksamana said that any State Enterprises lacking goodprospects would be liquidated. This decision was madeby the government because only Enterprises operatingin competitive sectors are likely to be successfullyprivatized. This means those Enterprises in goodcondition and minority government ownership, alongwith high technology capacity, said Laksamana. Headded that the strategic interests of potentialinvestors was an important criteria for privatization.
State Enterprises in Indonesia still lack animpressive work performance. This is indicated by thelow return of assets (ROA), returns on earnings (ROE)and the inadequate audits of several Enterprises suchas Jasa Marga, the Telkom telecommunication company,Garuda airways, Pelindo II (Indonesian Seaports), PLN(State Power Company) and the Pertamina oil company.
