State enterprises ministry to merge 15 plantation companies

Surabaya (ANTARA News) - The Ministry of State Enterprises will soon merge 15 plantation companies into a plantation holding company to facilitate them to secure bigger bank loans.

"In their present condition of scores of companies standing alone, they had difficulties in obtaining bank loans," Deputy to the State Enterprises Ministry for strategic restructuring and planning Pandu Djajanto said here Sunday.

In this context, he said that the 15 plantation companies include 14 PTPNs, and one PT Rajawali Nusantara Indonesia (RNI).

"In the meantime, right now the process is still with the finance ministry," he said.

He said the merger of the 15 plantation companies in a holding company is especially for cost efficiency purposes.

He also said that under the strategic resizing project, the number of state enterprises will become 118.

The state enterprises ministry has plans to build a similar project for pharmaceutical and forestry companies. (*)