State companies told to withdraw requests for capital injection

State companies told to withdraw requests for capital injection

Dahlan Iskan (ANTARA)

...I have repeatedly said there is no more capital support from the government even for companies in death`s throes
Jakarta (ANTARA News) - Minister for State Enterprises Dahlan Iskan told 13 state companies to stop proposing for state capital participation to the government.

"There is no more capital injection for state companies. There are 13 companies to receive capital injection based on the 2013 state budget, but I have asked to scrap the entitlement," Dahlan, said after a meeting of state companies leaders here on Tuesday.

The 13 companies include PT Boma Bisma Indra, PT Askrindo

PT Jamkrindo, PT Pertani, PT Batan Tek, Perum Antara, PT Dok Kodja Bahari, PT Dok Perkapalan Surabaya, PT Permodalan Nasional Madani, PT Hutama Karya, PT Barata Indonesia, PT INKA and Perum Prasarana Perikanan Samudra.

Dahlan passed the order to the 13 companies to withdraw proposal they have submitted for capital injection on Tuesday and they are required to comply with the order on Wednesday.

Failure to comply with the order shows the companies leaders are not capable of dealing with the problem they are facing, therefore, they would be replaced, he said.

He said until Tuesday he still received letters from state companies asking for state capital participation.

"Requests for capital injection continues to come in although I have repeatedly said there is no more capital support from the government even for companies in death`s throes."

Askrindo and Jamkrindo are an exception as they are asked to expand their capacity and strengthen their capital structure in providing credits for small businesses, he said.

However, even the two companies have not asked for capital injection, he added.
(ANT) 

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