National

Only 10 TNI Businesses Good Enough to Be Taken Over
Wednesday, 31 August, 2005 | 20:32 WIB

TEMPO Interactive, Jakarta:Out of so many companies, foundations and cooperative enterprises managed by the Indonesian Military (TNI), only a few meet the requirements for being taken over by the government.

Defense Minister Juwono Sudarsono said that seen from current assumptions, no more than 10 companies within TNI businesses meet corporate standards.

“According to the State Ministry for State-Owned Enterprises, the number is perhaps less than ten. This means that companies should have a strong legal base, statutes, cash flow in and out plus proper financial data from a corporate point of view,” said Sudarsono following the inauguration of Muladi as the governor of the National Resilience Institute at the State Palace on Tuesday (30/08).

However, the Defense Minister acknowledged that he was as yet unable to identify the total assets owned by these 10 TNI businesses.

“My estimate is that the assets are worth somewhere between Rp15 billion and Rp20 billion, whatever is required from a corporate point of view,” said Sudarsono.

TNI businesses that have such huge assets, the minister continued, must be more accountable.

Once taken over by the government, profits from these businesses will be targeted for the welfare of low-ranking TNI personnel.

Meanwhile, businesses that have assets below the said amount would not be taken over by the government as they already involve the welfare of low-ranking TNI personnel.

“Businesses such as chicken farms, fishing and simple savings and loans cooperatives will not be taken over,” stated Sudarsono.

Currently, according to the Defense Minister, there is still data collection and verification being carried out as regards all businesses within the TNI environment by an inter-department team from the defense department, the department of law and human rights, the state-owned enterprises department and the finance department. (Dimas Adityo-Tempo News Room)