House Commission Agrees To Privatization Of Four State Companies

Jakarta (Antara Bali) - The Commission VI on state companies of the House of Representatives (DPR) has agreed to the move to privatize four state-owned enterprises (BUMN) but askedc that the government's stake and state capital participation must be maintained.

The Commission VI reached the decision in a working meeting with Finance Minister Sri Mulyani who represented the State-owned Enterprises (SOE) minister. The meeting took place at the Parliament building on Wednesday.

The government should own stake in the companies, to the tune of at least 65.05 percent in case of PT Wijaya Karya, 70 percent in PT Jasa Marga, 80 percent in PT Krakatau Steel and 51 percent in PT Pembangungan Perumahan.

The state capital to be invested in PT Wijaya Karya amounted to Rp4 trillion, in case of PT Jasa Marga Rp1.25 trillion, PT Krakatau Steel Rp1.5 trillion and PT Pembangunan Jaya Rp2.25 trillion.

The state capital participation will be on the condition that the recipient BUMNs will use the funds to carry out priority government programs, focusing on infrastructure, energy sovereignty, food sovereignty, continuation of the smallholders credit scheme and the micro, small and medium sized enterprises.

Utilization of the state capital partnership funds will be supervised and audited by the State Audit Board (BPK) and these could not be used for construction of high speed train program.

The Commission VI also asked the State-Owned Enterprises Ministry to accord priority to local products and local workers, state companies and national contractors when it comes to goods procurement.

The SOE ministry is obligated to submit periodic reports to Commission VI of the DPR so that the House can  supervise the implementation of the state capital's utilization.

The recipient state companies are also requested to come up with a business plan.

The Commission VI will also set up a working committee to supervise the implementation of the state capital participation program. (WDY)