Divestment plan likely to change

Mustaqim Adamrah ,  The Jakarta Post ,  Jakarta   |  Sat, 06/21/2008 12:22 PM  |  City

The City Council may ask the Jakarta administration to take two city-owned enterprises, PT Rheem Jaya and PT Pakuan Internasional, out of an administration divestment plan, says Council Commission B on Economic Affairs secretary Nurmansjah Lubis.

"Rheem is still able to operate and generate profit, unlike other enterprises that have inadequate capital," he said Friday.

He said it would be better to keep Pakuan operational as it needed time to make up for its drop in share value. Improving its share value would minimize the administration's losses form the enterprise.

Rheem is a barrel making company and Pakuan manages golf courses.

Nurmansjah said Pakuan gave the administration more than 20 percent of its shares as compensation for acquiring a plot of a land for the company to use, making the administration the majority shareholder.

He said over time the company's shares had drastically dropped in value.

Murmansjah said the administration wanted Pakuan to make up for its losses in the form of bonuses, as PT Jakarta International Expo did.

Moreover, he said, Pakuan had benefited from using "the administration's label" in processing licenses.

Nurmansjah said a council-appointed committee would start deliberating the administration's divestment plan next week and would mull the future of the two enterprises.

Governor Fauzi Bowo sent a letter on Feb. 6 to the council, asking for approval for the divestment on six of its ailing enterprises to generate income.

The city economic bureau's city enterprises department head, Eden H. Siregar, said the six companies were Pakuan, Rheem, PT Jaya Nur Sukses, PT Bumi Grafika Jaya, PT Determinan Indah and publicly listed PT Alakasa Industrindo.

He said the divestment plan was made because of "huge losses the companies had incurred recently".

Pakuan is worth Rp 2 billion, Jaya Nur Rp 13 billion, Bumi Rp 1 billion, Rheem 1.5 billion and Alakasa Rp 800 million, Eden said. Determinan was already bankrupt.

According to Nurmansjah, based on the latest report of the companies' performance, Pakuan has incurred Rp 34 million in losses, Jaya Nur Sukses Rp 600 million, Bumi Rp 180 million, Alakasa Rp 8 billion and Determinan Rp 5.7 billion. "Only Rheem has managed to book a Rp 1 billion profit," he said.

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