National

Mandala Airlines Becomes Priority in Verification of TNI Business
Wednesday, 30 November, 2005 | 10:18 WIB

TEMPO Interactive, Jakarta:The team verifying the Indonesian Military (TNI) business will prioritize PT Mandala Airlines. The verification of this business will be difficult to be finished if the process is continuously postponed.

“There has been some bleeding in the cash flow of the business,” said State Ministry of State-Owned Enterprises’ secretary Said Didu at the Indonesian Military (TNI) headquarters (HQ) in Cilangkap on Tuesday (29/11).

As reported earlier, the Indonesian Military (TNI) business is being put in order because in the next five years, the Indonesian Military (TNI) will no longer do business as mandated by Defense Law. Currently, the verification team consisting of State Ministry of State-Owned Enterprises, Indonesian defense department, Indonesian finance department and Indonesian department of law and human rights is verifying the TNI businesses that use or do not use state assets. This will be finished in January next year.

Indonesian Military (TNI) businesses that do not use state assets will be returned and the legal articles will be straightened out because they cannot be taken by the state. If using state assets, the TNI business will have to see whether or not it is included in the business concerned.

If it were not included in the business, Said stated, this business would be returned to the Indonesian Military (TNI). Meanwhile, if it were included, the business might be changed to a State-Owned Enterprise, if it is profitable, or a company in which the state has minority shares in the company.

Sutarto once targeted the re-arranging of TNI businesses within two years. Sutarto was still convinced of this target. “We have similarities in opinion. We just need implementation in the field,” he said. (Fanny Febiana-Tempo News Room)