T

he government has promised to help settle state aircraft producer PT Dirgantara Indonesia (DI) debts, amounting to about Rp 1.76 trillion (US$188.2 million) so it can obtain bank loans and expand business activity.

“We have restructured some of Dirgantara Indonesia’s worst debts,” State-Owned Enterprises Minister Mustafa Abubakar told legislators at the House of Representatives Commission VI overseeing trade, industry, investment, small, medium and state enterprises.

It was reported that Dirgantara Indonesia owed Rp 1.06 trillion in Subsidiary Loan Agreement (SLA), a loan facility from the government using funds from state banks, and Rp 7.3 billion in Investment Account Fund (RDI), a loan facility  provided by the government to state firms using funds from foreign aid or loans.

Both RDI and SLA were inherited by state companies during the New Order era and have not been resolved.

“The improvement of DI’s balance sheet is necessary so that the company can raise credit from banks or join project bidding locally and overseas,” Mustafa said.

After booking a net profit of Rp 47 billion in 2006, the company reportedly suffered losses due to large debts and declining business.

The company was said to suffer losses of Rp 24 billion in 2007 and Rp 109 billion in 2008.

Mustafa said the ministry promised to help restructure the company’s debts to enable the company to improve its cash flow.

Besides DI, the State-Owned Enterprises Ministry listed 44 other state companies defaulting on debt payment under RDI and SLA facilities.

By the end of 2009, reportedly state enterprises owed RDI/SLA Rp 6.5 trillion, $499.6 million, ¤6.31 million and 48.6 million deutchmark.  

The ministry said it hoped these loans could be settled by 2014.

Besides restructuring debts, on Monday the State-Owned Enterprises Ministry acknowledged that it had asked state restructuring company PT Perusahaan Pengelola Aset to restructure eight ailing state companies that had suffered losses for years.

The eight companies are paper companies PT Kertas Leces and PT Kertas Kraft, PT Survey Udara Penas, shipping company PT Jakarta Lloyd, film company Perusahaan Film Negara, printing company PT Balai Pustaka, clothing company PT Industri Sandang and cement producer PT Semen Kupang.