No more bumn reporting losses in 2018: Rini

Jakarta (ANTARA News) - Minister for State Enterprises (BUMN) Rini M Soemarno promised there would be no more state company reporting losses in 2018.

In 2017, there were 12 state companies recording losses. The number were reduced from 24 companies in 2016.

"In 2018, the target is no more state company to suffer losses," Rini said when taking part in fun bike BUMN 2018 here on Sunday.

Steps have been taken to improve the financial performance of the 12 state companies suffering losses in 2017, she said.

"There are many ways, but the best way is synergy among them," she said citing, synergy among state companies operating in the same sectors is coordinated for efficiency.

Synergy could also be created by utilizing the products or services of each other company, each making use of the superiority of each other, she added.

Inefficiency is still a problem in the management of many state companies, she said pointing to PT Garuda Indonesia, which she said, had suffered losses more on operational efficiency.

The flag carrier has suffered losses lately more on tariff war and inefficiency by serving unprofitable international routes, she said.

The countrys largest steel maker Krakatau Steel reported large losses on a number of factor such as steel dumping by China, she added.

Therefore, state companies have to improve efficiency by create synergy to be more competitive, and merger should be considered among companies operating in the same line of business, she said.

All combined, 128 state companies recording Rp183 trillion in profit in 2017 , up 10 percent from profit recorded in 2016.

"I hope in 2018, all state companies would end this year with profit," she said.

She said state companies serve as pillars sustaining the national integrity and to improve the welfare of the people, as state companies are found in almost all business areas.

Source: ANTARA News

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