Companies that are just conducting restructuring certainly would not be forced to increase their capital expenditure but those that have been healthy and have the potential to rise would be encouraged.
Jakarta (ANTARA News) - State Enterprises Minister Mustafa Abubakar said he was ready to push state-owned companies (BUMNs) to increase their capital expenditure to the level of Rp380 trillion in the next four years.

"Rp380 trillion is the consolidated amount and it is hoped it will come from 60 to 70 percent of BUMNs that are in good financial conditions," he said at his office here on Wednesday.

He said in the 2011 corporate working budget plan (RKAP) the capital expenditure of all BUMNs was expected to reach Rp210 trillion, up from Rp196.91 trillion last year.

Meanwhile, their operational expenditure was expected to reach Rp1,929.87 trillion, up from Rp932.15 trillion last year.

Coordinating Minister for Economic Affairs Hatta Rajasa earlier said the BUMNs` capital expenditure in 2011 would reach Rp380 trillion which would go to business expansion to meet the needs for an economic corridor development program.

Right now the operational expenditure of all BUMNs is bigger than their capital expenditure. "The National Economic Committee thinks if the BUMNs could increase their capital expenditure more new jobs would be created," Mustafa said.

In view of that he said he would conduct kind of elaboration on the budget and capital capacity of each BUMN to invest.

"The deputies are still recording the BUMNs that are potential to increase their capital expenditure," he said.

He said companies that are just conducting restructuring certainly would not be forced to increase their capital expenditure but those that have been healthy and have the potential to rise would be encouraged.

He said he was optimistic there would be a leap in the growth of capital expenditure of the BUMNs in line with their increasing financial performance.

"The potential to raise capital expenditure may be gained from reduction of operational costs," he said.

"Quantitatively there will be efficiency in the 2011 RKAP and capital increase for expansion," he said.(*)

Editor: Heru Purwanto
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