State Firms' Profit Target For 2016 Set At Rp172 Trillion

Jakarta (Antara Bali) - Indonesia's State Enterprises Ministry has set the target for the state firms' net profit at Rp 172 trillion for 2016, 14.67 percent more than Rp150 trillion last year.

"Hopefully, this profit target can be achieved in 2016, as the financial performance of the state firms improves. We should be able to achieve it," State Enterprises Minister Rini Soemarno said here on Tuesday.

Last year, the state firms' net profit had fallen, compared to 2014, due to a decline in their income, he said.

"The economic conditions in 2015 resulted in the income reaching Rp1,728 trillion, compared to Rp1,923 trillion in 2014," she said.

The state firms are expected to see their income rising to Rp1,969 trillion this year, with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), estimated at Rp377 trillion, up from Rp319 trillion in 2015.

"For state-owned companies, the EBITDA ratio is important because it depicts how much potential the investment has to develop the business in the long run," he said.

The government is encouraging the state-owned firms to not only make as much profit as possible but also to serve as agents of development, she said.

Meanwhile, Deputy for Business Infrastructure to State Enterprises, Minister Wahyu Kuncoro, said the banking sector will contribute towards enhancing the state firms' profits.

He predicted that the state firms' profit will grow by 5-10 percent this year. (WDY)