Makassar, S Sulawesi (ANTARA Sulsel) - Transformation of state companies (BUMN) from bureaucratic to corporate culture could free Indonesia from debt burden, a former minister said.
"Our BUMN have big potentials. If the new government could transform BUMNs into corporate culture, the country could pay off its foreign debts," Tanri Abeng, former minister for state enterprises said.
So far all presidents have bequeathed larger debts to their successor,Tanri Abeng told a seminar on transformation of BUMN management here on Saturday.
By July 2014, the country had US$290.6 billion in foreign debt, up from US$284.9 billion in June in the same year.
Abeng said the 141 BUMNs including four banks, recorded a net profit of Rp108.7 trillion or around US$9.23 billion in 2013.
He said the profit was fairly big, but it is still far below the real capacity of the companies.
"Just compared with Malaysia`s oil and gas company Petronas, which alone reported a profit of US$20.4 billion , contributing 40 percent to the Malaysian state budget," he cited.
He said by expanding the capacity and economic scale of BUMNs by grouping them in holding companies , the country would no longer need foreign debts.
He said with the cultural transformation BUMNs could float part of their shares through public offering and the fund raised from the share sales could be used by the government to repay its debts.
However, BUMNs should be immune to political intervention and the process of transformation of BUMNs would require a strong leadership, he added.
Penerjemah : Fardah Assegaf
"Our BUMN have big potentials. If the new government could transform BUMNs into corporate culture, the country could pay off its foreign debts," Tanri Abeng, former minister for state enterprises said.
So far all presidents have bequeathed larger debts to their successor,Tanri Abeng told a seminar on transformation of BUMN management here on Saturday.
By July 2014, the country had US$290.6 billion in foreign debt, up from US$284.9 billion in June in the same year.
Abeng said the 141 BUMNs including four banks, recorded a net profit of Rp108.7 trillion or around US$9.23 billion in 2013.
He said the profit was fairly big, but it is still far below the real capacity of the companies.
"Just compared with Malaysia`s oil and gas company Petronas, which alone reported a profit of US$20.4 billion , contributing 40 percent to the Malaysian state budget," he cited.
He said by expanding the capacity and economic scale of BUMNs by grouping them in holding companies , the country would no longer need foreign debts.
He said with the cultural transformation BUMNs could float part of their shares through public offering and the fund raised from the share sales could be used by the government to repay its debts.
However, BUMNs should be immune to political intervention and the process of transformation of BUMNs would require a strong leadership, he added.
Penerjemah : Fardah Assegaf