"It is unacceptable that SOEs, which have natural resources and locations, are only given small shares."Jakarta (ANTARA News) - State enterprises minister Dahlan Iskan called on all state-owned enterprises (SOEs) to stop cooperating with private parties if, in the end, such cooperation hurts the SOE or if they only receive small shares.
"SOEs that cooperate with private parties, both local or foreign, must cancel their cooperation agreements if they are proven to be only hurting them," he said during a discussion here on Wednesday.
He noted that every cooperation agreement made by SOEs must bring as much benefit as possible to the companies.
He said, in many projects SOEs have only received 25 percent shares, while the remainder went to investors.
"This must never happen again. It is unacceptable that SOEs, which have natural resources and locations, are only given small shares ," he said.
He admitted he had already asked one of the state-owned plantation companies to cancel its cooperation with a private company for an oleo-chemical development project.
"I have instructed them to cancel it. It would be better to carry out the project by itself, as the company also has the capability," he said.
Dahlan would not name the plantation company he referred to or the value of the investment for the project.
He added, though, that SOEs could develop their businesses in cooperation with other SOEs.
"So long as the approach is business-to-business and the cooperation benefits the company, funding problems would be able to be overcome," he said.
(T.R017/H-YH/INE/KR-BSR/O001)
Editor: Priyambodo RH
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