"So, they must be merged to make them more powerful."
Jakarta (ANTARA News) - The government plans to encourage PT Industri Telekomunikasi Indonesia (INTI) to consolidate with PT Lembaga Elektronika Nasional (LEN) to improve the companies` financial performance.

"By consolidating it is hoped the companies would have more competitive edges and be able to take part in tenders and carry out large-scale projects," State Enterprises Minister Dahlan Iskan said here on Tuesday.

He said a new company would be set up for the restructuring program. "INTI and LEN would be merged with none being dominant in the new company," he added.

The minister did not tell about the name of the new company nor its total assets.

"What is certain is that PT INTI`s assets are bigger than LEN`s although the two have their own superiority," he said.

Dahlan said the consolidation option was taken after PT Telkom`s plan to acquire PT INTI was cancelled.

Before PT Telkom planned to acquire 49 percent of PT INTI`s shares in view of the two companies` similar lines of business.

The plan was cancelled before it was approved by the House of Representatives and minister Dahlan replaced it with consolidation.

Dahlan meanwhile said the planned merger between PT Sucofindo and PT Surveyor Indonesia would soon be realized with a new company PT Surfindo to be set up for it.

"The consolidation will not be done upon "who eats who" principles but on who has the bigger assets," he said.

Dahlan said the president director of PT Surfindo has already been named as well as members of its board of directors.

"I have named Fahmi Sidik, the former president director PT Surveyor Indonesia, president director (of the new company)," he said.

Dahlan said PT Surveyor Indonesia and PT Sucofindo must consolidate because the two companies` lines of business, expertise and markets are almost the same.

"The two companies are overlapping with almost 100 percent of their business activities being similar. So, they must be merged to make them more powerful," he said.

He also did not mention the value of their assets or their business capabilities.

The minister said it was hoped the consolidation could help the government especially the ministry of trade monitor export-import activities.

"Our surveyor must become big or otherwise the service business would be controlled by foreign companies," he said.

Dahlan said to merge state-owned companies his office first had to ask for permission to the House of Representatives and the finance ministry before a government regulation would be issued for it.
(T.R017/H-YH/F001)

Editor: Priyambodo RH
Copyright © ANTARA 2013