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SOE Minister Warns Ailing State Firms to Improve or Die
October 31, 2010

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The Indonesian government expects state-owned enterprises to contribute Rp 130 trillion ($14.5 billion) to the 2011 state budget, Rp 10 trillion more than this year, State Enterprises Minister Mustafa Abubakar said.

A large chunk would come in taxes and dividend payments from state-owned companies engaged in the mining, banking, oil and gas, and telecommunications sectors, he said.

The government wants more profit, he said. “Their annual growth of 18 percent is good, but there is still lots of room for them to increase their profit.”.

Last year 22 state firms made losses, and that figure should be down to eight this year and zero by 2011, he said.

“Those suffering losses will most likely be liquidated. They include [publishing house] Balai Pustaka and the state film company.”

Firms needing improvement include Merpati, Pelni and Djakarta Lloyd, he said. 


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