According to the president, the 141 state-owned enterprises were running at operational costs totaling Rp1,075 trillion per year and their annual capital expenditures amounted to Rp210 trillion.Jakarta (ANTARA News) - After reshuffling his cabinet, President Susilo Bambang Yudhoyono will review the performance of non-ministerial government institutions and state-owned enterprises (BUMNs) to make them more effective and efficient.
"After this cabinet reshuffle, we are going to review the performance of non-ministerial government institutions and state-owned enterprises," the President said in his policy speech at the installation of new ministers in his reshuffled cabinet at the State Palace on Wednesday.
He said the review was necessary because the 141 existing state-owned enterprises were not yielding profits for the state commensurate with the cost of operating them.
According to the president, the 141 state-owned enterprises were running at operational costs totaling Rp1,075 trillion per year and their annual capital expenditures amounted to Rp210 trillion.
"Judging by these figures, it is almost certain that there is something wrong , that public funds are being wasted by these state enterprises," the president said.
Therefore, he said, reforms must be made in the ranks of non-ministerial government institutions and state enterprises in the next three years.
The inordinately high expenses the state was incurring to maintain the non-ministerial government institutions and state- owned enterprises must be stopped as not only was it unfair but it could also harm the national economy.
At the State Palace earlier on Wednesday the president installed new ministers and deputy ministers of the United Indonesia Cabinet II lineup following a reshuffle on Tuesday.
In the ceremony taking place at 9 am local time, the head of state delivered a speech containing his directives on government policies until 2014.(*)
Editor: Heru Purwanto
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