DPR Approves State Capital In Merpati

Jakarta (Antara Bali) - State Enterprises Minister Dahlan Iskan has hinted that the House of Representatives (DPR) has approved a proposal for additional state capital participation (PNM) in state airline company PT Merpati Nusantara Airlines.

The fund would be used to strengthen business and overcome financial difficulties, though the company had posted an operating profit of Rp500 million per day in mid -June 2012, he said here on Monday.

However, he did not know the exact amount of additional capital requested by the company and approved by the parliament.

The House Commission VI had earlier approved the government's proposal for a budget fund allocation of Rp3 trillion as state capital participation in a number of state-owned companies this year.

Of the total, Rp1 trillion will be allocated to state aircraft maker PT Dirgantara Indonesia, and the rest to a number of strategic state-owned companies, including Rp600 billion to ship building company PT PAL, Rp300 billion to weapons manufacturer PT Pindad and Rp400 billion to PT Dirgantara Indonesia.

Meanwhile, ship building company PT Industri Kapal Indonesia (IKI) will receive Rp200 billion, PT Merpati Nusantara Airlines  Rp200 billion,  salt company PT Garam Rp100 billion, and paper manufacturer PT Kertas Leces Rp200 billion.(IGT)