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SOEs projected to lose Rp 4 trillion in 2017
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State-Owned Enterprises Minister Rini Soemarno (JP/Wendra Ajistyatama)
T
hirteen out of the 115 state-owned enterprises (SOEs) are projected to suffer financial losses to the tune of Rp 4 trillion (US$295 million) this year, with national carrier PT Garuda Indonesia and steel giant PT Krakatau Steel accounting for at least half of the sum.
In comparison, the SOEs combined losses amounted to Rp 5 trillion ($368 million) last year.
Minister for State Enterprises Rini Sumarno blamed fierce competition and management troubles at some of the companies for the losses.
Some of them have suffered losses for years, she added, as reported by Tempo.
Garuda and Krakatau Steel would likely see their losses amount to more than Rp 1 trillion, Rini said at a meeting with the directors of 115 SOEs.
Garuda faced stiff price wars this year and some of its international routes were inefficient, she said.
Krakatau Steel struggled against Chinese products being dumped on the Indonesian market, Rini added.
Papermaker PT Kertas Leces, aircraft manufacturer PT Dirgantara Indonesia and PT Merpati Nusantara Airlines were the other big losers in 2017, she said.
Rini told the SOE directors to strive for efficiency and look for ways to merge some of the companies that are in the same line of business. (sha/bbn)
