Raras Cahyafitri, The Jakarta Post, Jakarta | Sat, 04/21/2012 11:05 AM
Six state-owned enterprises (SOEs) are listed among the world’s biggest and most profitable public companies, evidence that state firms are competitive and are not lagging behind private firms, the government says.
The list, the Forbes Global 2000, measures public companies from 66 countries worldwide based on their assets, revenues, profits and market capitalization.
“So far, many think that state-owned firms lag behind private companies. That’s wrong. We are not inferior to private companies,” Wahyu Hidayat, State-Owned Enterprises Ministry secretary, told reporters on Friday.
Out of the 2,000 companies surveyed, micro-focused lender Bank Rakyat Indonesia (BBRI) ranked 479th, Indonesia’s largest bank by assets Bank Mandiri (BMRI) ranked 488th, while the nation’s No. 4 lender Bank Negara Indonesia (BBNI) was listed in 969th position.
Other Indonesian non-banking state firms on the list include telecommunication giant PT Telekomunikasi Indonesia Tbk (TLKM) at No. 726, while gas distributor PT Perusahaan Gas Negara (PGAS) ranked 1,351th and cement maker PT Semen Gresik (SMGR) came in at 1,674th.
The State-Owned Enterprises Ministry would continue to liberalize policies to support state firms’ expansion, which in turn will boost their performance, Wahyu said.
The ministry expected SOEs to post a 17.45 percent increase in net profits this year to Rp 145.56 trillion (US$15.87 billion) after the 140 state firms booked a total Rp 123.93 trillion net profit last year.
SOE’s sales are expected to grow at an average rate of 7.78 percent this year to Rp 1,495 trillion.
“The increase in net profits will be supported by efficiency and austerity measures taken in each company along with the ability to manage operational expenditures,” Wahyu said.
Overall, operational expenditures are expected to decline to Rp 1,216.46 trillion this year from Rp 1,226.55 trillion last year, while capital expenditures will rise to Rp 217.38 trillion this year to expand state firms’ businesses, up from Rp 142.34 trillion in 2011.
Oil company PT Pertamina and electricity firm PT Perusahaan Listrik Negara (PLN) were major contributors to last year’s achievement, followed by four state lenders Bank Mandiri, BRI, BNI and Bank Tabungan Negara.
Pertamina and PLN booked a combined net profit of Rp 28.27 trillion and sales totaling Rp 798.69 trillion last year.
Meanwhile, the four state banks are expected to achieve 15 percent growth this year, with total revenues of Rp 146.12 trillion and net profits of Rp 39.92 trillion this year, up from last year’s Rp 127 trillion and Rp 34.71 trillion.
The State-Owned Enterprises Ministry expects Pertamina and PLN to see a 7.18 percent dip in sales this year as a consequence of a lowering of the benchmark oil price Indonesia Crude Price (ICP) budgetary assumption to $105 per barrel from the 2011 level of $110 per barrel.
Despite lower sales, Pertamina and PLN might still book 27.27 percent growth in net profits to Rp 36 trillion this year from Rp 28.29 trillion last year.
Sixteen other state-owned companies listed on the bourse are also expected to report 15 percent growth this year, with combined net profits of Rp 40.97 trillion and sales reaching Rp 244.18 trillion.